A stock had annual returns of $6\%,-12\%,8\%,$ and $14\%$ over the past four years. The

arithmetic average of these returns is

percent while the geometric average return for

the period is percent. $(10\%)$

A$.4\mathrm{.}00$;$3\mathrm{.}52$

B$.4\mathrm{.}00$;$4\mathrm{.}00$

C$.4\mathrm{.}00$;$7\mathrm{.}17$

D$.8\mathrm{.}00$;$3\mathrm{.}52$

E$.8\mathrm{.}00$;$7\mathrm{.}17$

Consider the following information on three stocks:

A portfolio is invested $40$ percent each in Stock A and Stock B$,$ and $20$ percent in Stock

C$.$ The expected T$-$bill rate is $3\mathrm{.}2$ percent. What is the expected risk premium on the

portfolio? $(10\%)$

A$.3\mathrm{.}29\%$

B$.5\mathrm{.}55\%$

C$.7\mathrm{.}00\%$

D$.10\mathrm{.}25\%$

E$.12\mathrm{.}75\%$