QUESTION 9

1. You have the following information about the return on three stocks

   AT&T GM Apple

   2016 8 10 - 2

   2017 - 4 - 3 10

   2018 7 13 - 3

   2019 - 3 - 4 15

   Use this information to answer questions 9 through 14. First question (question 9): What are the sample mean returns on each of the three stocks?

   	a.	AT&T = 3 GM = 4 Apple = 5
   	b.	AT&T = 2 GM= 4 Apple = 7
   	c.	AT&T =2 GM = 4 Apple = 5
   	d.	None of these

10 points

QUESTION 10

1. What are the sample variances of the return on the three stocks?

   	a.	AT&T sample vaiance= 40.666 GM sample variance = 76.666 Apple sample variance = 81.6666
   	b.	AT&T sample var. = 45.333 GM sample var.= 76.666 Apple sample var. = 84.666
   	c.	AT&T samp. var. = 40.666 GM samp. var = 76.666 Apple samp.var = 79.333
   	d.	None of these

10 points

QUESTION 11

1. What are the sample standard deviations of the three stocks?

   		AT&T samp. std. dev. = 6.377 GM samp. std. dev. = 8.756 Apple samp. std. dev. = 8.442
   		AT&T samp. std dev = 6.377 GM samp. std. dev. = 8.756 Apple samp. std dev. = 8.907
   		AT&T samp. std. dev. = 6.733 GM std. dev. = 8.463 Apple samp. std. dev. 8.723
   		None of these

10 points

QUESTION 12

1. What is the covariance of returns of AT&T and GM?

   	a.	15.666
   	b.	22,333
   	c.	25.967
   	d.	27.666
   	e.	None of these

10 points

QUESTION 13

1. What is the covariance of the returns on GM and Apple?

   	a.	- 22.76
   	b.	- 50.333
   	c.	- 54.233
   	d.	- 36.784
   	e.	none of these

10 points

QUESTION 14

1. what are the returns on each portfolio in 2019

   	a.	portfolio1 = .2(-3) + .8(- 4) = - 3.8
   	b.	portfolio 1= .5(- 3) + .5(- 4) = - 3.5
   	c.	portfolio1 = (- 3 - 4 )/2 = - 3.5
   	d.	none of these