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Risk and Return You wish to invest and the options are as follows: Stock A Potential price 13.72 Current Price 8.72 Potential price 8.72 Potential
Risk and Return | |||||
You wish to invest and the options are as follows: | |||||
Stock A | |||||
Potential price | 13.72 | ||||
Current Price | 8.72 | Potential price | 8.72 | ||
Potential price | 6.72 | ||||
Stock B | |||||
Potential price | 6.72 | ||||
Current Price | 8.72 | Potential price | 8.72 | ||
Potential price | 13.72 | ||||
Suppose you by 2 shares of Stock B. | |||||
3. What is your expected return? | |||||
A Between 1.0% and 10.0% | |||||
B Between 10.0% and 13.0% | |||||
C Between 13.0% and 16.0% | |||||
D Between 16.0% and 25.0% | |||||
4. What is the standard deviation of possible returns? | |||||
A Between 10.0% and 40.0% | |||||
B Between 40.0% and 52.0% | |||||
C Between 52.0% and 66.0% | |||||
D Between 66.0% and 80.0% | |||||
Suppose you buy 1 share of Stock A and 1 of Stock B. | |||||
5. What is your expected return? | |||||
A Between 1.0% and 10.0% | |||||
B Between 10.0% and 13.0% | |||||
C Between 13.0% and 16.0% | |||||
D Between 16.0% and 25.0% | |||||
6. What is the standard deviation of possible returns? | |||||
A Between 0.0% and 10.0% | |||||
B Between 10.0% and 12.0% | |||||
C Between 12.0% and 15.0% | |||||
D Between 15.0% and 20.0% |
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