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4) Over the past five years Over the past five years, a stock produced returns of Il percent, 14 percent, 4 percent, -9 percent, and

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4) Over the past five years Over the past five years, a stock produced returns of Il percent, 14 percent, 4 percent, -9 percent, and 5 percent. What is the probability that an investor in this stock will not be more than 10 percent in any one given year! ODIO A) Greater than 5 but less than 1.0 percent B) Greater than 95 percent C) Greater than 1 percent but less than 2.5 percent og doba D) Greater than 2.5 percent but less than 16 percent E) Greater than 84 percent but less than 97.5 percent XS avons 5) A stock had annual retums of 11.3 percent 9.8 percent. -73 percent, and 14.6 percent for the past four years. Based on this information, what is the 95 percent probability bobni range of returns for any one given year? A) -12.5 to 26.7 percent oilo og bolgooooo B) -10.4 to 12.3 percent to nobnoqobili C) -2.60 to 11.80 percent D) -2.4 to 17.5 percent lo III b E) -10.9 to 25.1 percent to Il bna the expected return on the market is 100% of 1.33. The risk-free n's common stock has a beta of 1.33. The risk-free rate is 3.4 percent urn on the market is 10.97 percent. What is the cost of equity? B) 13.3 percent on on the stock basa 12.84 percent 13.33 percentage 249 perceptio I bill. C) 12.49 percent D) 14.07 percent E) 13.47 percent ( of following should earn the highest risk premium based on CAPM? 6). 6) 7) Which one of the following A) Portfolio with a beta of 1.01 B) Stock with a beta of.74 C) Stock with a beta of 1.38 D) Diversified portfolio with retums simit n E) U.S. Treasury bill ith retums similar to the overall market ips 7)

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