1. You purchased the stock of Sargent Motors at a price of $75.75 one year ago today. If you sell the stock today for $89.00, what is your rate of return? A) 35.00% B) 12.50% C) 17.50% D) 25.00% Answer 2. You have invested in a project that has the following payoff schedule Probability of Occurrence 15 20 Payoff $40 $50 $60 $70 S80 30 05 What is the expected value of the investment's payoff? (Round to the nearest 51.) A) $60 B) $65 C) $58 D) $70 Answer: 3. Spartan Sofas, Inc. is selling for $50.00 per share today. In one year, Spartan will be selling for $48.00 per share, and the dividend for the year will be $3.00. What is the cash return on Spartan stock? A) $51.00 B) $1.00 C) $2.00 D) $3.00 Answer: 4. Which of the following sequences is arranged in the correct order, from highest long-term returns to lowest? A) Small stocks, government bonds, large stocks B) Large stocks, treasury bills, small stocks C) Small stocks, large stocks, treasury bills D) Government bonds, large stocks, treasury bills