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AAPL sells for $150 a share today. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of
AAPL sells for $150 a share today. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock Price $200 $4.00 Scenarios Boom (likelihood=1/3) Normal economy (likelihood=1/3) Recession (likelihood=1/3) 1.00 153 0.20 104 The Treasury bills rate for the same investment period is 0.5%. What is the expected return of a portfolio invested half in AAPL and half in Treasury bills? What is the standard deviation of a portfolio invested half in AAPL and half in Treasury bills? Selected Answer: 1.120%; 26.71% Answers: 2.573%; 10.157% 1.120%; 26.71% 1.605%; 13.58% 0.891%; 10.157%
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