Question
NEED JUST ANSWERS TO DOUBLE CHECK IF I GOT IT CORRECT THANK YOU!!! 1) Trailer Co. stock has an expected return of 12.2 percent and
NEED JUST ANSWERS TO DOUBLE CHECK IF I GOT IT CORRECT THANK YOU!!!
1) Trailer Co. stock has an expected return of 12.2 percent and a standard deviation of 11.8 percent. What is the smallest expected loss over the next month given a probability of 5 percent?
A. -4.59%
B. -6.09%
C. -7.27%
D. -11.49%
E. -13.77%
2) A portfolio has a 3-year standard deviation of 18.1 percent. What is the one-year standard deviation?
A. 6.39%
B. 8.69%
C. 10.45%
D. 11.80%
E. 12.33%
3) A portfolio has an average return of 14.2 percent and a standard deviation of 14.5 percent. Given this, you should expect to lose at least _____ percent on an annual basis once every century.
Probability of loss | z value |
1.0% | 2.326 |
2.5% | 1.960 |
5.0% | 1.645 |
A. -19.53
B. -17.24
C. -15.68
D. -1.710
E. -1.550
4) You purchased one SPX call option with a strike of 1,500. You wrote one SPX call option with the same maturity date and a strike of 1,450. At maturity, what is your payoff if the S&P 500 is at 1,475?
A. -$2,500
B. -$250
C. $25
D. $250
E. $2,500
5) High Mountain Homes has an expected annual return of 16.1 percent and a standard deviation of 20.3 percent. What is the smallest expected loss over the next month given a probability of 2.5 percent?
A. -6.64%
B. -8.67%
C. -10.14%
D. -12.12%
E. -15.13%
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