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1. If you own 300 shares of Alaska Air at $42.88, 350 shares of Best Buy at $51.32, and 250 shares of Ford Motor at

1.

If you own 300 shares of Alaska Air at $42.88, 350 shares of Best Buy at $51.32, and 250 shares of Ford Motor at $8.51, what are the portfolio weights of each stock? Round your answers to 3 decimals places.

Alaska Air
Best Buy
Ford Motor

2. The past five monthly returns for Kohls are 3.54 percent, 3.62 percent, 1.68 percent, 9.25 percent, and 2.56 percent. Compute the standard deviation of Kohls monthly returns. (Do not round intermediate calculations and round your finalanswer to 2 decimal places.)

3.Calculate the price of a zero coupon bond that matures in 20 years if the market interest rate is 4.5 percent. (Do not round intermediate calculations and round your finalanswer to 2 decimal places.)

4.

Table 9.2 Average Returns for Bonds
Long-Term Treasury Bonds
1950 to 1959 Average 0.0 %
1960 to 1969 Average 1.6
1970 to 1979 Average 5.7
1980 to 1989 Average 13.5
1990 to 1999 Average 9.5
2000 to 2009 Average 8.0
Table 9.4 Annual Standard Deviation for Bonds
Long-Term Treasury Bonds
1950 to 1959 4.9 %
1960 to 1969 6.2
1970 to 1979 6.8
1980 to 1989 15.1
1990 to 1999 12.8
2000 to 2009 10.3

Calculate the coefficient of variation of the risk-return relationship of the bond market (Use the above Tables) during each decade since 1950. (Round your answers to 2 decimal places.)

Decade CoV
1950s Not defined
1960s
1970s
1980s
1990s
2000s

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