For the next 2 questions suppose the following holds:

Suppose the security I has the following probability distributions:

Statei	Probability	rI
1	0.3	-10%
2	0.7	24

What is the expected return for security I?

5.6%

8.2%

9.0%

10.4%

13.8%

1 points

QUESTION 2

What is the standard deviation for security I?

9.84%

10.58%

13.08%

15.58%

16.66%

1 points

For the next 2 questions suppose the following holds:

The CAPM holds and r_RF%, r_M%.

What is r_i for a security with _i.5?

15.0%

16.2%

16.6%

17.2%

17.8%

1 points

QUESTION 2

What is the beta of a security with r_A.2%?

0.78

0.85

0.95

1.05

1.2