1.) Suppose Stock A has the following returns over the last five years: 8%, 5%, 9%, 2%, and 2%. What is the average annual return? LO2

4.2%

5.0%

4.4%

3.8%

Suppose Stock A has the following returns over the last five years: 8%, 5%, 9%, 2%, and 2%. What is the realized annual return? LO2

4.32%

5.26%

4.82%

5.27%

3.) Suppose you are considering buying a stock with a beta of 0.7. What is your required return given by the CAPM if the expected return on the market is 8%, the risk-free rate is 1%? LO3

6.9%

6.6%

5.6%

5.9%