3-You own a stock that had returns of 11.26 percent, ?7.62 percent, 24.48 percent, and 16.72 percent over the past four years. What was the geometric average return for this stock? 10.55% 9.84% 11.66% 11.21% 12.14%

6-

What range of returns should you expect to see with a 99 percent probability on an asset that has an average return of 10.85 percent and a standard deviation of 24.64 percent?

?26.11% to 47.81%

?38.43% to 60.13%

?63.07% to 84.77%

?13.79% to 7.91%

?13.79% to 35.49%

7-

Lakeside Winery is considering expanding its winemaking operations. The expansion will require new equipment costing $661,000 that would be depreciated on a straight-line basis to zero over the 4-year life of the project. The equipment will have a market value of $174,000 at the end of the project. The project requires $44,000 initially for net working capital, which will be recovered at the end of the project. The operating cash flow will be $198,900 a year. What is the net present value of this project if the relevant discount rate is 14 percent and the tax rate is 34 percent?

$33,511

?$37,234

?$28,275

?$40,099

?$31,417

8-

Asonia Co. will pay a dividend of $4.40, $8.50, $11.35, and $13.10 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 10.2 percent on the company's stock, what is the stock price?

$28.36

$30.72

$34.78

$33.09

$40.18