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4) The annual return on Ewing Oil is normally distributed, with mean of 6.0%. (So the expected return is 6.0%.) You invest $300,000 in this

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4) The annual return on Ewing Oil is normally distributed, with mean of 6.0%. (So the expected return is 6.0%.) You invest $300,000 in this stock for one year. Graph the probably, that after one year, you have a) at least 335,000, b) at most $288,000, as the annual standard deviation of returns on Ewing runs from 5% to 40%. (Use one graph for this.) 5) Grayson is traded on the Botswana stock exchange, There are six future states of the world as laid out below. Using the CAPM model, determine what the risk-free rate of return is in Botswana. State of the World Return to Grayson Market Return Probability 1 0.13 -0.02 0.02 2 0.17 0.08 0.05 3 0.2 0.13 0.06 4 0.22 0.08 0.04 5 0.12 0.13 0.03 6 0.16 0.12 0.06 4) The annual return on Ewing Oil is normally distributed, with mean of 6.0%. (So the expected return is 6.0%.) You invest $300,000 in this stock for one year. Graph the probably, that after one year, you have a) at least 335,000, b) at most $288,000, as the annual standard deviation of returns on Ewing runs from 5% to 40%. (Use one graph for this.) 5) Grayson is traded on the Botswana stock exchange, There are six future states of the world as laid out below. Using the CAPM model, determine what the risk-free rate of return is in Botswana. State of the World Return to Grayson Market Return Probability 1 0.13 -0.02 0.02 2 0.17 0.08 0.05 3 0.2 0.13 0.06 4 0.22 0.08 0.04 5 0.12 0.13 0.03 6 0.16 0.12 0.06

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