Suppose a stock had an initial price of $59 per share, paid a dividend of $1.6 per share during the year, and had an ending share price of $72. Compute the percentage total return. rev: 09_20_2012 24.75 20.28 30.85 25.98

You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 13 percent and Stock Y with an expected return of 9 percent.

Required:

(a)	If your goal is to create a portfolio with an expected return of 12.5 percent, how much money will you invest in Stock X?
	(Click to select)$8,313$31,250$8,750$9,188$9,100

(b)

If your goal is to create a portfolio with an expected return of 12.5 percent, how much money will you invest in Stock Y?

(Click to select)$1,250$1,313$1,300$1,188$1,200

3.

Consider the following information:

		Rate of Return if State Occurs
State of Economy	Probability of State of Economy	Stock A	Stock B
Recession	0.20	0.05	-0.20
Normal	0.60	0.08	0.13
Boom	0.20	0.12	0.35

Required:

(a)	Calculate the expected return for Stock A. (Do not round your intermediate calculations.)
	(Click to select)8.20%7.85%9.86%10.03%7.28%

(b)	Calculate the expected return for Stock B. (Do not round your intermediate calculations.)
	(Click to select)10.80%9.33%12.34%10.26%11.23%

(c)	Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.)
	(Click to select)2.23%1.57%2.34%2.12%2.32%

(d)	Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.)
	(Click to select)17.60%12.45%19.48%16.72%18.30%