5. a) Who are "insiders" of a corporation? b) Why is illegal insider trading prohibited? In the recent insider trading case involving U.S. Representative Chris Collins (there is a link in the powerpoint slides): c) what is the name of the company involved? d) who received and traded on the insider information? e) describe the crime that was committed by Rep. Collins. (10pts) 6. Expedia Inc. is traded on NASDAQ and Red Lion Hotels is traded on NYSE. Bao Chenyang owns shares in both companies. He wants to estimate what his expected return and risk for each stock will be for next year. Expedia Red Lion Hotels Possible Return Probability Possible Retum Probability 20% 20% -15% 20% 30% 50% 20% 50% 40% 30% 60% 30% a) Which stock is likely to give her a better return? b) Which stock is riskier? (show your calculations), c) Calculate the risk per unit of return for each stock. (10pts) ish (United States Focus 180 5. a) Who are "insiders" of a corporation? b) Why is illegal insider trading prohibited? In the recent insider trading case involving U.S. Representative Chris Collins (there is a link in the powerpoint slides): c) what is the name of the company involved? d) who received and traded on the insider information? e) describe the crime that was committed by Rep. Collins. (10pts) 6. Expedia Inc. is traded on NASDAQ and Red Lion Hotels is traded on NYSE. Bao Chenyang owns shares in both companies. He wants to estimate what his expected return and risk for each stock will be for next year. Expedia Red Lion Hotels Possible Return Probability Possible Retum Probability 20% 20% -15% 20% 30% 50% 20% 50% 40% 30% 60% 30% a) Which stock is likely to give her a better return? b) Which stock is riskier? (show your calculations), c) Calculate the risk per unit of return for each stock. (10pts) ish (United States Focus 180