1) Suppose the Japanese stock market bubble peaked at 48,200 in 1989. Two and a half years later it had fallen to 19,800. What was the percentage decline? (Negative answer should be indicated with a minus sign. Round your answer to 2 decimal places.)

Market decline %

2) Compute the expected return given these three economic states, their likelihoods, and the potential returns:(Round your answer to 2 decimal places.) Economic State Probability Return Fast growth 0.31 32 % Slow growth 0.43 20 Recession 0.26 33

Expected return %

3) Sprint Nextel Corp stock ended the previous year at $38.96 per share. It paid a $3.02 per share dividend last year. It ended last year at $34.49. If you owned 740 shares of Sprint, what was your dollar return and percent return? (Negative answers should be indicated with a minus sign. Round your percent return answer to 2 decimal places.)

Dollar return $

Percent return %

4) Rank the following three stocks by their total risk level, highest to lowest. Night Ryder has an average return of 10 percent and standard deviation of 30 percent. The average return and standard deviation of WholeMart are 11 percent and 35 percent; and of Fruit Fly are 16 percent and 32 percent.

Rank Stock 1 (Click to select)Night Rider/Whole Mart/Fruit Fly

2 (Click to select)Night Rider/Fruit Fly/Whole Mart

3 (Click to select)Whole Mart/Night Rider/Fruit Fly Comment