7) Last year in 2017, you invested your life savings into a retirement portfolio. You invested your money in Nicklaus Ceramics and Bobby Jones Airlines. (assume no dividends paid)

STOCK 2017 Price / Share 2017 # of shares 2018 Price / Share

Nicklaus Ceramics $22.27 4,843.00 $25.47

Bobby Jones Airlines $51.00 2,445.00 $56.97

a)What is the value of the portfolio today in 2018 (one year later)? (Round to: 2 decimal places.)

b)How many dollars did the portfolio earn in 2018? (Round to: 2 decimal places.)

c)What percentage return did the portfolio earn over the past year? (Percentage Round to: 2 decimal places)

11) Coca-Cola recently developed and implemented new Freestyle machines. These beverage machines replace the traditional dispensers in restaurants and allow customers unlimited combinations of drinks. Suppose that the price of Coca-Cola stock in the next year will depend on consumer response to these new machines. Let's assume that the current price of Coca-Cola is $60.00 per share. Below are projected Coca-Cola share values based on how the project responds:

OUTCOME PROBABILITY SHARE PRICE

Average Response 0.30 $57.00

Positive Response 0.70 $67.00

a)What is the return if the response is positive?

b)What is the expected return for Coca-Cola investors next year?

c)What is the standard deviation for Coca-Cola returns next year?

(Round to 2 decimal places)