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Jerry has a five-stock portfolio of with the following values and returns. Market value Expected (1) Stocks return (%) IBM 8 $40,000 50,000 Apple 20

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Jerry has a five-stock portfolio of with the following values and returns. Market value Expected (1) Stocks return (%) IBM 8 $40,000 50,000 Apple 20 Microsoft 20,000 12 ATT 100,000 6 Cisco 30,000 10 $240,000 The value-weighted expected return of Jerry's portfolio is O a. 9.2596 b. 10.2596 O c. 11.7596 d. 12.259 e. None of the above. The table below provides the information about three stocks: (2) Stock (i) 1 Expected return Eri) 8% 12% 15% Standard deviation Oi 10% Correlation coefficient Pij P12 = P13 = 0.0 P23 = -0.2 2 15% 25% 3 The covariance of returns between Stocks 2 and 3 is O a. 0. b.-0.0025. O c. -0.0055. O d. -0.0075. e. None of the above. (3) The following is a firm's production function: Q = 12L2 0.5L3 where Q: level of output L: number of workers The maximum output occurs when the firm hires workers. a. 0. b. 8. O c. 16. d. 24. e. None of the above

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