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Question Assume the risk-free asset has a 6% expected return and the risky asset has an expected return of 10% with a 20% standard deviation.

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Question Assume the risk-free asset has a 6% expected return and the risky asset has an expected return of 10% with a 20% standard deviation. You want an 8% expected return. What standard deviation will you have to accept? 1) 18% 2) 16% 3) 20% 4) 15% 5) 10% Question You have a stock that paid you a $1.00 dividend over the past year. If you lost 20% when you sold the stock for $27, how much did you buy it for? 1) $27 2) $30 3) $34 4) $35

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