8.Assume a fair coin and consider the following bet: heads I pay you twodollars, tails you pay me a dollar. What is the expected payoff (return) of this bet to you?

A. $0B$0.50C. $0.50D.$1.00E. $1.00

9.If the required return from an asset is 10%, and the asset has a 60% probability of yielding a 20% return and a 40% probability of earning a 5% return, you should:

A. forgo the investment opportunity since the expected return of 14% is too low.

B. not acquire the asset since the expected return of 32% exceeds the required return.

C. purchasethe asset because the expected return of 32% exceeds the required return.

D. purchasethe asset because the expected return of 12.5% exceeds the required return.

E. purchase the asset since the expected return of 14% exceeds the required return.

10.What is the expected return for a portfolio composed 25% of asset X, 40% of asset Y and 35% of Asset Z. The expected return for asset X is 13.5%, asset Y is 9.5% and asset Z is 7.5%?

A.9.4%B.9.8%C.10.0%D.10.3%E.10.8%