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(20pts). 1. Your stockbeoker has called to tell you abost two thocks, Uber Techinologies, Inc. (UBERR) and Lyit, Inc. (L.YFT). She tells you that UBER

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(20pts). 1. Your stockbeoker has called to tell you abost two thocks, Uber Techinologies, Inc. (UBERR) and Lyit, Inc. (L.YFT). She tells you that UBER is selling for $22.00 per share and that she expects the price in oee year bo be 349.00. LYtT is selling for \$13.00 per share and she expects the price in coe ytar to be 541.00. The eepected return on UEBER has a standadd deviatice of 20 persent, while the expecied refurn on LYTT has a standand deviatice of 30 gervess. The market risk premium for the S a. P 500 has averaged 7.D percent. The teta for UBER is 1.33 and the beta for L.YFT is 1.88. The 10yeat Treatury boed rate is carrently 3.00+. Neither UBER Bor LYFT pays zeash dividend. Required: a) Determine the prohability for each stock that you would earm a negative returti. b) Determine the probability for each stock that yoe would carn more than your required rate of return. c) Explain why yeu would or wreld sot boy exter or bocth of the fwo stocks. 15 pes) 2. Brandon Corp. preforred atock is selliag for 500 per share in the mark et. This (20pts). 1. Your stockbeoker has called to tell you abost two thocks, Uber Techinologies, Inc. (UBERR) and Lyit, Inc. (L.YFT). She tells you that UBER is selling for $22.00 per share and that she expects the price in oee year bo be 349.00. LYtT is selling for \$13.00 per share and she expects the price in coe ytar to be 541.00. The eepected return on UEBER has a standadd deviatice of 20 persent, while the expecied refurn on LYTT has a standand deviatice of 30 gervess. The market risk premium for the S a. P 500 has averaged 7.D percent. The teta for UBER is 1.33 and the beta for L.YFT is 1.88. The 10yeat Treatury boed rate is carrently 3.00+. Neither UBER Bor LYFT pays zeash dividend. Required: a) Determine the prohability for each stock that you would earm a negative returti. b) Determine the probability for each stock that yoe would carn more than your required rate of return. c) Explain why yeu would or wreld sot boy exter or bocth of the fwo stocks. 15 pes) 2. Brandon Corp. preforred atock is selliag for 500 per share in the mark et. This

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