Problem 1: Clara Romero bought a share of Tesla, Inc. for $ 299.66 at the beginning of 2018. At the end of the year, Clara decided to sell the share whose market value was $ 331.29. Determine the return obtained by Clara for this investment.

Problem 2: Joseph Cintron bought 1,000 shares of Waste Management, Inc. at $ 113.74 a share. Waste Management, Inc. paid $ 2.50 in dividends per share. After a year, Mr. Cintrn decided to sell his shares at the market price of $ 112.94 per share. Determine the return on investment obtained by Mr. Cintron and the total amount of money that he earned or lost in the transaction per year.

Problem 3: Here are the annual returns for five different stocks. Determine the expected return and risk for a period of five years for each of the stocks.

	Rendimientos
Ao	WMT	ADRE	MSFT	GOOG	BIIB
20x0	12.0%	7.5%	12.3%	13.1%	8.5%
20x1	9.3%	4.3%	12.0%	16.2%	9.1%
20x2	8.2%	8.1%	11.9%	15.7%	9.0%
20x3	10.3%	9.2%	11.8%	18.2%	8.7%
20x4	11.5%	6.1%	12.0%	19.3%	8.8%

Problem 4: a. Find the coefficient of variation (CV) for each of the actions in problem 3.

b. Explain which of the investments a risk-averse investor would prefer and which a risk-lover investor would prefer.

Problem 5:

a. Using the data provided in problem 3, determine the return and risk for a portfolio made up of the following three stocks if you want to distribute your investment as follows: 20% in ADRE; 65% in MSFT, and 15% in GOOG.

b. How would the portfolio be affected if you distributed your investment as follows: 30% in ADRE; 25% on MSFT and 45% on GOOG?

c. Which of the two portfolios would a risk-seeking investor prefer and why?