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1. Rank the following three stocks by their risk-return relationship, best to worst. Rail Haul has an AVG return of 12 % and STDEV of

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1. Rank the following three stocks by their risk-return relationship, best to worst. Rail Haul has an AVG return of 12 % and STDEV of 25 %. The AVG return and STDEV of Idol Staff are 15 % and 35 %, and of Poker-R-Us are 9% and 20%. Rank Stock 2. A corporate bond that you own at the beginning of the year is worth $975. During the year, it pays $45 in interest payments and ends the year valued at $965. What was your dollar return and % return? (Round your "% return" to 2 decimal places.) Dollar return % return 3. Consider the following three bond quotes: a Treasury note quoted at 97:27, a corporate bond quoted at 103.25, and a municipal bond quoted at 101.90. If the Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value of $5,000, what is the price of these three bonds in dollars? (Do not round intermediate calculations and round your final answers to 2 decimal places.) Treasury note Corporate bond Municipal bond 4. At the beginning of the month, you owned $6,000 of News Corp, $5,000 of First Data, and $8,500 of Whirlpool. The monthly returns for News Corp, First Data, and Whirlpool were 8.24 %, -2.59%, and 10.13%. What's your portfolio return? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Portfolio return 5.1. Calculate the price of a 5.2 % coupon bond with 18 years left to maturity and a market interest rate of 4.6%. (Assume interest payments are semiannual.) (Do not round intermediate calculations and round your final answer to 2 decimal places.) Bond price 5.2. Is this a discount or premium bond? A. Discount bond B. Premium bond 6. You have $15,000 to invest. You want to purchase shares of Alaska Air at $42.88, Best Buy at $51.32, and Ford Motor at $8.51. How many shares of each company should you purchase so that your portfolio consists of 30 % Alaska Air, 40 % Best Buy, and 30% Ford Motor? (Do not round intermediate calculations and round your final answers to the nearest whole number.)

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