12-13

Questions 12-13 are based on the information that follows: 500 You are given the following information on Stock A, Stock Band on the market portiolio. The return on the riskles ass Returns on Asset A, B and M and Probability of the different cases are shown below. Case Good 30 35 40 45 Bad .05 10 12 15 Average.15 25 30 40 12. What is the mean rate of return of Asset A? 18.75% O 16.49% 20.25% O 25.86% Questions 12-13 are based on the information that follows. 58 You are given the following information on Stock A, Stock Band on the market portfolia. The return on the riskless assetisk Retums on Asset A, B and M and Probability of the different cases are shown below. Case Good 30 35 40 45 Bad 1.05.10 12 15 Average.15 25 30 40 13. What is the standard deviation of the rate of return of Asset A? 10.56% 8.65% 09.42% 06.75%