1. You have two assets in your portfolio consisting of: Phoenix Airline and Bosco Tech. You have worked out the following data: Phoenix Airline expected return = 13% with a standard deviation of returns = 15%. Bosco Tech expected return = 17.5% with a standard deviation of returns = 18%. The covariance between the returns series = -0.00456. What is the expected return and standard deviation for a portfolio consisting of 60% invested in Phoenix Airline and the remainder invested in Bosco Tech?

Select one:

a. Expected return = 15.50%; Standard Deviation = 10.53%

b. Expected return = 14.35%; Standard Deviation = 1.20%

c. Expected return = 14.80%; Standard Deviation = 10.53%

d. Expected return = 1.11; Standard Deviation = 14.80%

2.

Geddes bought the shares of DigiComm for $50 in January 2020. The share paid a dividend of $2.00 in June after which it was sold for $42. Calculate the Holding Period Return of the share.

Select one:

a. 12.00%

b. -12.00%

c. -16.00%

d. 16.00%

3.

What is the present value of $160,000 received in 12 years' time. The interest rate is 4.00 percent p.a.

Select one:

a. $160,000

b. $201,128.48

c. $91,231.45

d. $85,124.62

e. $99,935.53