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Consider the returns of two stocks and the market in three states of the world. The states 1,2 , and 3 occur with probability 25%,50%,
Consider the returns of two stocks and the market in three states of the world. The states 1,2 , and 3 occur with probability 25%,50%, and 25%, respectively. Q70 (4 pts) What are stock A and B's expected returns, respectively? A. 2.5%,10.25% B. 2.5%,11.25% C. 3.5%,10.25% D. 3.5%,11.25% E. None of the above or cannot be determined based on the information given Q8 (4 pts) What are stock A and B's beta with respect to the market, respectively? A. 3.33,3.63 B. 3.33,3.93 C. 3.03,3.63 D. 3.03,3.93 E. None of the above or cannot be determined based on the information given Q9 (4 pts) Suppose you invest $1,000 in stock A, $500 in stock B, and $3,000 in the market. What is the beta of your portfolio with respect to the market? A. 0.90 B. 0.94 C. 0.97 D. 1.00 Consider the returns of two stocks and the market in three states of the world. The states 1,2 , and 3 occur with probability 25%,50%, and 25%, respectively. Q70 (4 pts) What are stock A and B's expected returns, respectively? A. 2.5%,10.25% B. 2.5%,11.25% C. 3.5%,10.25% D. 3.5%,11.25% E. None of the above or cannot be determined based on the information given Q8 (4 pts) What are stock A and B's beta with respect to the market, respectively? A. 3.33,3.63 B. 3.33,3.93 C. 3.03,3.63 D. 3.03,3.93 E. None of the above or cannot be determined based on the information given Q9 (4 pts) Suppose you invest $1,000 in stock A, $500 in stock B, and $3,000 in the market. What is the beta of your portfolio with respect to the market? A. 0.90 B. 0.94 C. 0.97 D. 1.00
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