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QUESTION 10 A stock has the following returns : 26%, 4%, -30%, 43%, and 7%. What are the arithmetic and geometric average returns of the

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QUESTION 10 A stock has the following returns : 26%, 4%, -30%, 43%, and 7%. What are the arithmetic and geometric average returns of the stock? 12.5%; 7.0% 10%, and 7% 7% and 10% 12.5% and 8.8% QUESTION 11 A portfolio comprises of two assets, asset X and Y, with an investment worth of $4,500 in stock X and $5,500 in stock Y. If the economy is in boom only, then what is the expected return of the portfolio? Stock X Stock Y Probability of the state of economy State of Economy Boom Normal 15% 85% 23% 12% 9% 7% 15.3% 10.16% 12.75% 14.68%

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