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Risk and Return You wish to invest and the options are as follows: Stock A Potential price 15.45 Current Price 10.45 Potential price 10.45 Potential

Risk and Return
You wish to invest and the options are as follows:
Stock A
Potential price 15.45
Current Price 10.45 Potential price 10.45
Potential price 8.45
Stock B
Potential price 8.45
Current Price 10.45 Potential price 10.45
Potential price 15.45
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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