A. If the monthly rate of return on a stock is 5% every month, what is the annual standard deviation assuming that rates are independent of previous rates? A. 60% B. 7.74% C. 17.32% D. none of the above. 25. You consider buying a share of stock at a price of $31. The stock is expected to pay a dividend of $2.58 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $34. The stock's beta is 0.8, the risk-free rate is 5%, and the expected return on the market portfolio is 15%. What is the stock's abnormal return? A. 5% B. 8S C. 0% D. 4% 26. The rates of return covariance between stock A and stock B is 0.04. The rates of return covariance between stock A and Stock C is 0.06. What is the rates of return covariance between stock A and a portfolio made of 60% stock B and 40% stock C? A. 0.048 B. 0.052 . 0.05 D. none of the above