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QUESTION 6 Consider two risky stocks. Stock A has an expected return of 11 percent and a standard deviation of 12. Stock B has an

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QUESTION 6 Consider two risky stocks. Stock A has an expected return of 11 percent and a standard deviation of 12. Stock B has an expected return of 9 percent and a standard deviation of 20 percent. The correlation coefficient between the two stocks is -0.1. What is the expected return of a portfolio where 80 percent of the capital is invested in stock A and 20 percent is invested in stock B? O 12.0 O 12.5 9.3 10.6 8.8 QUESTION 7 Four months ago, you purchased 2000 shares of DDX stock for $48.0 a share. You have received dividend payments equal to $4.7 a share. Today, you sold all of your shares for $55.0 a share. What is your total dollar return on this investment? O 19142 27832 19430 23400 20970 QUESTION 8 Over a certain period, large-company stocks had an average return of 13.8 percent, the average risk-free rate was 7.2 percent, and small-company stocks averaged 21.6 percent. What was the risk premium on small-company stocks for this period? 28.8 7.8 14.4 6.6 21.6 OOO

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