Speculative, or non-investment-grade, bonds have an S&P bond rating of

Select one:

a. BBB or less.

b. CCC or less.

c. C or less.

d. BB or less.

Stock A has the following returns for various states of the economy: State of the Economy Probability Stock A's Return Recession 10% -30% Below Average 20% -2% Average 40% 10% Above Average 20% 18% Boom 10% 40% Stock A's expected return is

Select one:

a. 8.2%.

b. 7.2%.

c. 9.6%

d. 5.4%.

Stock W has the following returns for various states of the economy: State of the Economy Probability Stock W's Return Recession 10% -30% Below Average 20% -2% Average 40% 10% Above Average 20% 18% Boom 10% 40% Stock W's standard deviation of returns is

Select one:

a. 14%.

b. 20%

c. 17%.

d. 10%.