Q.17

17. You invest $200 in a risk-free asset and $800 in a risky portfolio. The risk-free rate is 4%. The risky portfolio has an expected return of 12% and a volatility of 20%. of your portfolio's return? A. 20% B.16% C.12% D. 4% The probability distribution of returns for two stocks A and B is given in the following table. Use this table to answer questions 18 and 19 Return of stock A Return of stock B Scenario Good Normal Bad Probability 0.25 0.35 0.02 0.08 0.01 0.1 005 0.4 0.05 and that of stock B is 18. Expected return of stock A is A. 2.16%, 0.45% B. 3.25%, 196 C, 2.16%-1.24% D. 3.25%,-1.65%