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Q 2 2 Use the following information to answer the next four questions:StateBoomNoralBustProb . 0 . 2 5 0 . 5 0 0 . 2

Q22 Use the following information to answer the next four questions:StateBoomNoralBustProb.0.250.500.25RA20%RB-10%155616In addition, we have the following information: RF =2%; Rm =10%, BA =1.5 and BB =0.25.The expected retums on assets A and B areO 13.67% and 244%O 12.50% and 0%O 15% and 5O 14% and 4%Q23 The standard deviations of assets A and B areO 8.97% and 342%O 5.05% and 9.25%160.88% and 23.39%25.50% and 85.50%None of the aboveQ24 The covariance between A and B isO -14.83(or -0.001483 if using decimals rather than % for returns)044.50(or -0.004450)O 16.275.0(or 1.627400)O.5,424,500(or 0.542450)Q25 Use the relevant information about Assets A and B to mark the correct answer:O Aand B are both underpriced A and B are both over pricedO A is overpriced and B underpricedO A is underpriced and B overpriced Both A and B are fairly priced

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