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4. You have been given the probability distribution for the holding period return of CCC Inc. stock: State of the Economy Boom Normal Recession Assuming
4. You have been given the probability distribution for the holding period return of CCC Inc. stock: State of the Economy Boom Normal Recession Assuming that the expected return on CCC's stock is 14.35%, what is the standard deviation of these returns? Probability 20 45 35 HPR 24% 15% 8% a. 4.72% b. 6.30% . 4.38% d. 5.74% e. 5.99% f. None of the above. 5. If the annual real rate of interest is 2.5% and the expected inflation rate is 3.4%, the nominal rate of interest would be approximately: a. b. c. d. e. 4.9% 0.9% -0.9% 7% None of the above. You purchased a share of Cisco stock for $20.00. One year later, you received a $2.00 dividend and sold the stock for $31.00. What was your holding period return? 6. a. 45% b, 50% c.60% d, 40% e. None of the above. 7. When an investment advisor attempts to determine an investor's risk tolerance, which factor would they be least likely to assess? a. The investor's prior investing experience. b. The investor's degree of financial security c. The investor's tendency to make risky or conservative choices. d. The level of return the investor prefers. e. The investor's feelings about losses. f. None of the above
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