Expected rate of return and risks Syntex Inca considering an investment in one of two common stocks Given the information that fotows, which investment is better based on the risk as mensured by the standard deviation and retur? Common Stock A Common Stock Probability Return Probability Return 0.30 115 0.20 0.40 15% 0.30 6% 0.30 19% 0.30 SON 0.20 225 Cocon Dordre contacto Given the information in the table. The expected rate of retum borok Around to wo decimal places) Tiw standard deviation of stockACK (Round to turn decimal places) b. The expected site of tum for stocks (Round to two decimal places) The standard deviation for stok Round a two decimal places) 6. Based on the risk tas nessured by the standard deviation and return of each slock, which investment is betur? (Select the best choice below) O A Shock Als better because has a higher expected rate of retum in less risk Stock Bis beter because that a lower expected rate of retuwmore Huk c Pated to Checkpoint.) Expected rate of return James Fromholtz is considering whether to invest in a newly formed investment fund. The Fund's investiment objective is to our home mortgage securities at what tropes will be hargain prom. The fund sponsor has opted to Jones that the fund's performance withings on how the national sconomy perform in the coming ye. Secally, he speed the following posible outcomes lased on these potential outcomes, what is your estimate of the expected rate of retum from this Investment opportunity 6. Would you be interested in making such an inent? Note that you to all your money in ore you a sconomycotes to the worst te or you double your money the economy enters into a rapid expansion . The expected rate of rotun from the investment opportunity found to be decimal places) . Would you be interested in making such an investment in a best choice below) On Your interest in making such an investment would depend on your riskeraren you do not the risk you should wood veemant over you do not indisk you may want to make the rivestment O No, I would not be interested in making such an invent. The scorony la mol likely to un into a depression OCY, I would be morated in making such an awesort The economy is mostly to begin a rapid expansion and recovery Calculating rates of return The common stock of Place interpret had a market price of $16.58 on the day you purchased just one year ago During the past year the stock had paid a dividend of $1.46 and doned at a price of $13.31 What rate of retundid you can on your investment in Pace's stock? The tube of sturn you came on your investment in Paco stock (Round to be decimal places Malled to Checkpot1) Expected rate of return James Fromhoteis considering whether to invest in a newly formed investment fund. The tund's ietective is to acquire home mortgage securities at what it rope will be bargain pron. The lund sponsor hagested to James that the Fund's performance will hinge on how the national economy perform in the coming year. Becay, he wanted the following possible outcomes Bed on these potential outcomes, what is your estimate of the expected rate of room from this investment opportunity want you to humwa ni mara wh howeriner Note that you wo you money incre your res economy cotapes who were or you do to your money 1 comeny erers who a rooid expansion . The expected rate of rotum from the investment opportunity found to be decimal places) Would you be trend in making such an internet best choice below) OA No, I would not be interested in making such an investment. The economy is most likely to sink into a depression O You, I would be interested in making such an investment. The economy is most likely to begin a rapid expansion and recovery OG Your interest in making such an investment would depend on your risk tolerance you do not like risk you should avoid this investment, however you do not mind risk you may want to make this vestent (Computing rates of return) From the following price data, compute the annual rates of roturn for Asman and Salinas. Time Asman Salinas $11 $30 12 10 33 14 Can the son order to copy its contents into preacht How would you interpret the meaning of the annual rates of return? The rate of return you would have eamed on Aaman stock from time to time 2% (Round to two decimal places The rate of return you would have earned on Asman stock from time to time a in (Round to two decimal places) The rate of return you would have earned on Asman stock from time to time in (Round to two decimal pinces) The rate of return you would have earned on Salinas stock from time to time 2% (Round to two decimal places.) The rate of return you would have earned on Salinas lock from me to time to Round to two decimal places) The rate of return you would have earned on Bain stock from time to time 4 in (round to two decimal placen.) How would you interpret the meaning of the annual rates of roburn? (Select the best choice below) Calculating rate of retum aloon manufacture and its birthday balcon Ale beginning of the years common stock was seiner $17.91 but by year and was only 315.63 the formaldehid of 1247 during the year, what we of rotu would you have earned it you had purchased the stock exactly one year ago What would your rate of the been the firm had paid no cash dividend? The role of atom you would have come to Hound towel The muta at rutm you would have come the fim palo na cash attend round to two decimal peet)