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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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