Answer in 4 decimal places

1. Calculate the 95% confidence interval for both bonds. Assume 1.96 standard deviations from the mean.

4. That same stock was purchases at the start of the year for $10 and is now worth $11 and also paid a $1 dividend during this time. What is the actual return for this stock?

5. Calculate the coefficient of variation, Mr Smith calculated an expected return of 5% on a stock and a standard deviation of 3%.

6. If a stock A has a coefficient of variation of 4 and stock B has a coefficient of variation of 3 which stock is riskier?

DEF Bond LMO Bond Mean Return 10% 20% Standard Deviation 2% 15%