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According to the Bloomberg Network (a Financial TV channel), the current return on the U.S T-bill is 2.9% and the market risk premium is 7.4%.

According to the Bloomberg Network (a Financial TV channel), the current return on the U.S T-bill is 2.9% and the market risk premium is 7.4%. Given this news, in the table below, the only stock that is correctly priced is:

Stock Beta Expected Return
A .75 8.45 %
B 1.45 14.30
C 1.26 11.18
D 1.42 13.56
E .95 8.65

Multiple Choice

  • Stock A

  • Stock E

  • Stock B

  • Stock D

  • Stock C

Dan Conway invested his life savings in cryptocurrencies in 2016. Since then, that investment has earned an average return of 10.11%. What is the range of Dan Conways returns with a 68% probability, if his investment exhibits a standard deviation of 19.02%?

Multiple Choice

  • 46.95% to 67.17%

  • 8.91% to 29.13%

  • 8.91% to 11.31%

  • 18.42% to 38.64%

  • 27.93% to 48.15%

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