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Question 3 Prob % Return to A % Return to B 0.25 7 10 4 2 0.25 0.25 12 7 0.25 15 5 Consider the
Question 3 Prob % Return to A % Return to B 0.25 7 10 4 2 0.25 0.25 12 7 0.25 15 5 Consider the probability distribution above. Calculate the standard deviation of the returns to A: O A. Less than or equal to 2.5% B. Greater than 2.5% but less than or equal to 5% C. Greater than 5% but less than or equal to 7.5% D. Greater than 7.5% Question 4 Prob % Return to B 0.25 % Return to A 7 10 4 2 0.25 0.25 12 7 0.25 15 5 Consider the probability distribution above. Calculate the standard deviation of the returns to B: A. Less than or equal to 2.5% B. Greater than 2.5% but less than or equal to 5% C. Greater than 5% but less than or equal to 7.5% D. Greater than 7.5% Question 5 Prob % Return to A % Return to B 0.25 4 2 0.25 7 10 12 15 0.25 7 0.25 5 What is the correlation coefficient (PAB) of assets A and B? A. Greater than or equal to -1.0 but less than -0.5 B. Greater than or equal to -0.5 but less than 0 C. Greater than or equal to 0 but less than 0.5 D. Greater than or equal to 0.5 but less than or equal to 1.0 Question 6 % Return to A % Return to B 0.25 7 10 4 2 0.25 0.25 12 7 0.25 15 5 What is the expected return of a portfolio than invests 60% in stock A and the rest in Stock B? A. Less than or equal to 5% B. Greater than 5% but less than or equal to 7.5% OC. Greater than 7.5% but less than or equal 10% D. Greater than 10%
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