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18. If you want to measure the performance of your investment in a fund, inc the performance of your investment in a fund, including the

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18. If you want to measure the performance of your investment in a fund, inc the performance of your investment in a fund, including the timing of your purchases and redemptions you should calculate the A. geometric average return B. arithmetic average return C. dollar weighted return D. index return 19. You put half of your money in a stock portfolio that has an expected return of 20% and a standard deviation of 30%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The stock and bond portfolio have a correlation 0.5. The standard deviation of the resulting portfolio will be equal to _ A. 18.73% B. 35.1% C. 22% D. none of the above 20. A project has 80% chance of doubling your investment in one year and a 20% chance of losing half your money. What is the standard deviation of this investment? A. 50% B. 93% C. 123.69% D. 139.12% E. none of the above. che following from highest average historical standard deviation to lowest average historical standard 21. Rank the following from highes deviation from 1926-2008 I. Small stocks II. Long term bonds III. Large stocks IV. T-bills A. I, II, III, IV B. III, IV. II, 1 C. I, III, II, IV D. III, I, II, IV

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