Stock X produced the following returns in recent years:

Year Stock X

1 9%

2 9%

3 7%

4 -8%

5 6%

Calculate the standard deviations of the returns on the stock.

2. Calculate the expected return on stock of Time Saver Inc.:

State of the economy Probability of the states Percentage returns

Economic recession 23% 6.2%

Steady economic growth 37% 3.6%

Boom Please calculate it -3.7%

Round the answers to two decimal places in percentage form.

3.King Farm Manufacturing Company's common stock has a beta of 1.57. If the risk-free rate is 3.52 percent, and the market return is 9.90 percent, calculate the required return on King Farm Manufacturing's common stock.

4.Which of the following statements isfalse?

Question options:

A)

A stock is overvalued if its estimated rate of return is less than its required rate of return.

B)

A stock is undervalued if its estimated rate of return is above its required rate of return.

C)

A stock is considered overvalued if its required rate of return is below its estimated rate of return.

D)

A stockis properly valued if its estimated rate of return is equal to its required rate of return.