1. Jimmy Butler invests in individual stocks through TD Ameritrade. Find Dick's Expected Return! His stock portfolio of individual stocks currently is:

Stocks in Portfolio	Portfolio Weights	Expected Returns
Microsoft	30%	13%
Visa	20%	9%
Costco	20%	10%
Blackrock	20%	8%
QQQ (an ETF of the top 100 Nasdaq firms)	10%	14%
TOTAL %	100%

Choices:

11.9%

9.9%

10.7%

10.1%

2. Which one of the following is the best example of unsystematic risk?

Group of answer choices

An increase in consumer spending

An increase in corporate tax rates from 21% to 28%

A warehouse fire owned by the firm

Inflation exceeding market-wide expectations

3. A stock is expected to return 13 percent in an economic boom, 10 percent in a normal economy, and 3 percent in a recessionary economy. Which one of the following will lower the overall expected rate of return on this stock?

Group of answer choices

A decrease in the probability of a recession occurring

An increase in the rate of return for a normal economy

An increase in the probability of an economic boom

An increase in the rate of return for an economic boom