Question
5.a. If you buy a stock for $100, receive a dividend of $3 and then sell the stock for $110, what is the total return
5.a. If you buy a stock for $100, receive a dividend of $3 and then sell the stock for $110, what is the total return from your investment (in percentage terms)?
5.b. If a project has a 35% chance of doubling your money and a 65% chance of losing half your money, what is the expected return for this project?
5.c. You own a portfolio of stocks with 40% of your money invested in company A, 40% of your money invested in company B and 20% of your money invested in company C. If the betas are 1.0 for stock A, 2.0 for stock B and 0.5 for stock C, what is the beta of your portfolio?
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