1.A statistical measure of the variability of a distribution around its mean is referred to as __________.

1)the standard deviation

2)a probability distribution

3)the expected return

4)the coefficient of variation

2.Following are the stock returns of the share of ABC Ltd. Calculate the expected return.

Years

Return

Year 1

10.54

Year 2

14.56

Year 3

13.25

Year 4

15.20

1)13.95%

2)12.65%

3)13.39%

4)15.31%

3.Which one of the following is considered an example of systematic risk?

1)a higher inflation rate than predicted

2)higher company profits than those forecasted

3)lower company sales than predicted

4)resignation of a firm's chief financial officer Save

4.You have invested total $12,075 in 3 securities (A, B and C)in your portfolio. Out of $12,075 you have invested30% in A,45% in B and25% in C. The expected return next year from these 3 securities are 20.15% 22.03% and 3.86% respectively. What is theexpected return of your portfolio next year?

5.When correlation coefficient between returns onsecurities j and market returns = -0.10; standard deviation of returns on securities j =27.80% and standard deviation of market returns = 18.20%. What is thebeta value of security j ?