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please answer #1, 2 and 3... 17. The Dybvig Corporation's common stock has a b a. 13.60% . 12.00% ed return on the market is

please answer #1, 2 and 3...

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17. The Dybvig Corporation's common stock has a b a. 13.60% . 12.00% ed return on the market is 11 percent, what d. 19.90% BA-519 Fall, 2018 Choose the BEST answer (3 points each) Please circle your answer for each question. Use this table for #1 ~ #5. Outcome Good Bad Probabilit 60% 40% 21% 8% 19% 12% Use the above probability information to calculate the expected return for asset A. 20.26% 16.20% 44.60% 15.80% 6.37% 1. a. b. d. e. 2. Use the above probability information to calculate the standard deviation for asset A. a. 0.0224 b. 0.0041 c. 0.0637 d. 0.20206 e. 0.2020 3. Use the above probability information to calculate the expected return for outcome "G a. b. . d. e. invest $12,000 in A and $7,000 in B. 20.20% 20.26% 9.47% 15.80% 16.20% 4. a. b. What is true regarding the following statements? Arithmetic average return can accurately measure wealth change of the investor Arithmetic average return is always lower than the otherwise equivalent geometric a because geometric average return inflates the investor's wealth change Arithmetic average return always inflates the true wealth changeof the investor and higher than the otherwise equivalent geometric average return Neither arithmetic average return nor geometric average return can wealth change c. y mea d. 5. The beta of the market portfolio should be: a. 1 always d. changing all the time

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