answer for number 12

(184 million) 82.50 135.00 21.45 80.00 2013 55.10 115.52 151.22 24.04 144.62 2014 58.15 138.90 166.99 26.53 135.93 2015 58.45 121.02 149.42 23.53 74.61 2016 52.43 174.62 177.27 32.46 75.01 2017 52.50 165.52 164.48 34.48 67.22 2018 54.82 * Number of shares outstanding. 12. Market Indexes. In February 2009, the Dow Jones Industrial Average was at a level of about 8,000. In mid-2018, it was about 24,500. Would you expect the Dow in 2018 to be more or les likely to move up or down by more than 40 points in a day than in 2009? Does this mean the market was riskier in 2018 than it was in 2009? (LO11-2) 13. Scenario Analysis. Consider the following scenario analysis: (LO11-2) Rate of Return Bonds Stocks Probability Scenario +14% -5% 0.20 Recession +8 0.60 +15 Normal economy +4 +25 0.20 Boom a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? b. Calculate the expected rate of return and standard deviation for each investment. c. Which investment would you prefer? 14. Risk and Expected Return. A stock will provide a rate of return of either -18% or +26%. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. (LO11-2) 15. Scenario Analysis and Portfolio Risk. The common stock of Leaning Tower of Pita Inc., a restaurant chain, will generate payoffs to investors next year, which depend on the state of the economy, as follows: (LO11-2 and LO11-3) Dividend Stock Price