Use the following table to calculate the expected return for an individual stock.

Return	Probability
0.1	0.25
0.2	0.5
0.25	0.25

Group of answer choices

15%

18.75%

20%

17.5%

Consider a bond with a BBB rating. Is it a

Group of answer choices

Investment grade bond

High-yield bond

Neither

Both

Flag question: Question 5

Question 52.5 pts

A university department is considering setting up a scholarship of $15,000, increasing each year at the rate of inflation. The plan is to grant it to a deserving student every year in perpetuity. What is the amount of money the department needs to invest today to be able to do this? The rate of return is 8%, and the expected inflation is 2%.

Group of answer choices

$187,500

$250,000

$750,000

None of these