Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

D Question 14 1 pts Paulie invested $20,000 in ABC Corp. and $40,000 in DEF Corp. the return percentages of ABC Corp. and DEF Corp.

image text in transcribed

D Question 14 1 pts Paulie invested $20,000 in ABC Corp. and $40,000 in DEF Corp. the return percentages of ABC Corp. and DEF Corp. will vary as shown in the information below: ABC Return DEF Return State of Economy Probability of State Boom 35% 15% 7% Good 25% 12% 7% Poor 30% 8% 6% Bust 10% - 10% 6% What is the expected return of Paulie's investment? o 6.25% 7.62% 6.42% 9.65% Question 15 1 pts Same facts as above: what is the standard deviation of Paulie's investment? 2.62% 4.03% 2.68% O 0.07% Question 16 1 pts Which of the following is not true? Unsystemic risks includes risks that are prevalent in all of the markets. The risks associated with investing in a stock can be somewhat mitigated through diversification. A stock's total return incorporates both expected return and unexpected return. None of the above all of the above are correct)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance And Sustainability

Authors: William Sun, Celine Louche, Roland Perez

1st Edition

1780520921, 978-1780520926

More Books

Students also viewed these Finance questions

Question

identify current issues relating to equal pay in organisations

Answered: 1 week ago