Questions 2: Risk and Return (50 points) Stock A Rate of Return Probability (p) The Economic Status Optimistic Most Likely Pessimistic 14 % 10 % -9% 35 % or 0.35 45 % or 0.45 10 % or 0.10 1. Calculate the Expected Rate of Return E(r) for Stock A. (15 points) 2. Calculate Variance and Standard Deviation for Stock A. (25 points) 3. Calculate the Sharpe Ratio, assuming risk free rate is 5%. (10 points) Question 3: (5 points - each 1.25 points) 1. Partnership as a form of businesses subject to few government Cop regulations (erican College of the Middle East, 2021 2. Present value concept states that an amount of money today is worth more than that same amount in the future. () 3. Inflation is the process in which prices of goods and services decline over time. O 4. Finance is concerned with preparation of financial statements ( )