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Stock X has an expected return of 10% per year and stock Y has an expected return of 20%. If 30% of the funds are

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Stock X has an expected return of 10% per year and stock Y has an expected return of 20%. If 30% of the funds are invested in stock X, and the rest in stock Y. what is the expected return on the portfolio of stock X and stock Y? 15% 20% 17% None of the above Sarah Brown bought a stock at $80 and sold it for$87 after a year. She received dividends of $ 4 per share in that year. What is the rate of return on her stock investment? 5.00 8.75% 12.64% 13.75% None of the above Stock A has an expected return of 10% per year and standard deviation of 6%, and stock B has an expected return of 20% and standard deviation of 15%. If 40% of the funds are invested in stock A, and the rest in stock B, what is the standard deviation of the return on the portfolio of stock A and stock B? 6% 15% 11.4% need more information According to the capital asset pricing model, which of the following stocks should have the Highest required rate of return? Stock Name Standard Deviation Beta Alpha Foods 12.0% 0.6 Beta Electronics 28.0 1.2 Omega Automobiles 35.0 1.6 Beta Electronics because its standard deviation is highest. Alpha Foods because the ratio of standard deviation/beta is lowest. Omega Automobiles because its beta coefficient is highest Not enough information is given to answer this question. All else equal, risk averse investors generally require ___________returns to purchase investments with __________ risks higher; lower lower; higher

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