1.A certain company pays dividends based on the overall state of the economy. You think that the economy has three possible states: boom, level, and slump. If the economy is booming, you will receive a $10 dividend. A normal economy will result in a $5 dividend, and a slumping economy will only pay a $2 dividend. Assuming that each state of the economy has a one in three chance of occurring, what is the expected value of your dividend?

Select one:

A. $5.67

B. $3.30

C. $15.00

D. $17.00

2.Jack purchased a share one year ago for $8.89, and it is now worth $14.80. The share paid a dividend of $1.67 during the year. What was the share's income rate of return during the year? (as a percentage to the nearest two decimal points. dont use % sign. eg 2.881% is 2.88)

3.A company is in the process of constructing a new plant at a cost of $16 million. It expects the project to generate cash flows of $9 million, $7 million, and $11 million over the next three years. The cost of capital is 15.3 percent p.a. What is the net present value of this project? (in millions to three decimals)

Select one:

a. $36.248

b. $4.248

c. $1.561

d. $5.053

4.In the next year, you expect Westpac shares have a 20% chance of earning 10 percent return, a 50% chance of earning only 2 percent and a 30% chance of earning -10 percent. Based on this, what is Westpac's expected return?

Select one or more:

A. 2.00%

B. 0.67%

C. 0.00%

D. 5.00%

5.You have invested 32 per cent of your portfolio in an investment with an expected return of 18 per cent and 68 per cent of your portfolio in an investment with an expected return of -9 per cent. What is the expected return of your portfolio? (as a percentage to two decimal places; eg 2.881% is 2.88))

Select one:

a. 9.36%

b. -0.36%

c. -0.86%

d. 11.88%