Question
Please Use BAII plus calculator for the equation calculation Q1) Assume that JQHs returns are normally distributed. The expected return for JQH is 10% and
Please Use BAII plus calculator for the equation calculation
Q1) Assume that JQHs returns are normally distributed. The expected return for JQH is 10% and standard deviation is 5%. What is the probability of JQH stock providing a return within the range 15% to 20%?
2.5%
16%
68%
13.5%
none
Q2) Returns on ABC, Inc. are forecast to be the following:
State | Probability | Return |
Boom | 0.25 | 30% |
Normal | 0.65 | 15% |
Bust | 0.10 | -13% |
What is the standard deviation of this companys stock?
11.82%
11.56%
11.32%
11.07%
10.83%
Q3) A portfolio is typically well-diversified when it contains:
No fewer than 100 stocks
No fewer than 50 stocks
No fewer than 30 stocks
Approximately 10 stocks
Approximately 100 stocks
Q)4
A stock provides the following returns:
Year 1 | 6% |
Year 2 | 10% |
Year 3 | -5% |
What is the geometric average return?
3.83%
3.47%
3.10%
2.74%
2.37%
Q5)
PQR Corporation has a Beta of 1.5. The risk-free rate is 6%, and the market risk premium is 10%. What is the required rate of return of PQR?
22.5%
21%
19.5%
18%
16.5%
Q7) Josh has a portfolio of two stocks, Stocks A has a Beta of 2.4 and stock B has a Beta of 0.9. Funds are allocated with 60% in Stock A and 40% in Stock B. if the T-bill rate is 4%, and the market expected return is 13%, what is the required return on the portfolio?
18.58%
19.12%
19.66%
20.20%
20.74%
Q8) Nancy has a portfolio of two stocks. Stock A has an expected return of 10% and stock B has an expected return of 12%. Her funds are allocated with 54% in stock A and 46% in stock B. What is the portfolio expected return?
8.38%
8.92%
9.46%
10.92%
10.54%
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