2) Stock As expected return is 15% and its standard deviation is 5%. Which of the following statements is correct?

a.	There is a 68% chance that Stock As realized returns will be between 10% and 20%.

b.	There is a 95% chance that Stock As realized returns will be between 10% and 20%.

c.	If an investor holds only Stock A and does not own any other assets, then this investor is rational.

d.	Forming a two-stock portfolio by adding a negatively correlated second stock will make beta the relevant measure of this portfolios risk exposure.

e.	None of the above statements are correct.

Stock X is expected to pay a dividend of $3.00 at the end of the year. The dividend is expected to grow at a constant rate of 6% a year. The stock currently trades at a price of $50 a share. Assume that the stock is in equilibrium. Which of the following statements is most correct? a. The required return on the stock is 12% b. The stock's expected capital gains yield is 6%. C. The stock's dividend yield is 0%. Statements a and b are correct All of the statements above are correct