a9 Stock A has the following returns for various states of the economy: State of the Stock A's economy Probability return 10% 20% 40% 20%--40% 10% -30% Recession Below Average Average -2% 10% 18% Avbove Average Boom Stock A's expected return is A) 5.4% B) 7.2% C) 8.2% D) 9.6% Q10 Using the same table from Q09, what is Stock A's standard deviation of returns? A) 10% B) 14% C) 17% D) 20% Q11 Variation in the rate of return of an investment is a measure of the riskiness of that investment. A) True B) False Assume that you have $100,000 invested in a stock whose beta is.85, $200,000 invested in a stock whose beta is 1.0S and $300,000 invested in a stock whose beta is 1.25. What is the beta Q12 of your portfolio? A) 0.97 B) 1.02 C) 1.12 D) 1.21