1.Yorik's Joke Shops has a beta of 1.7, the risk free rate is 2.15%, and the return on the market is 12.4%.Yorik's expected return is closest to:

A.23.23%.

B.14.55%.

C.19.575%.

2.Two assets, Q & R, each have an expected return of 11.75%. Asset Q's standard deviation is 13% and Asset R's standard deviaion is 13.2%. A rational investor will choose:

A.Either asset R or asset Q.

B.Asset Q.

C.Asset R.

3.Assume all stock prices fairly reflect all of the available information on those stocks. Which one of the following best defines the stock market under these conditions?

A.Risklessmarket.

B.Efficient capital market.

C.Equilibrium market.

4.Digitech'sstock has an average expected return of 8.70% and a standard deviation of 11.50%.The probability of earning greater than 31.7% is closest to:

A.5%

B.95%

C.2.5%