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value, face Tutorial questions 25300 FBF Tutorial 8-Risk and Returrn 1. You purchased 150 shares in ABC Ltd at the beginning of the year at

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value, face Tutorial questions 25300 FBF Tutorial 8-Risk and Returrn 1. You purchased 150 shares in ABC Ltd at the beginning of the year at a price of $75.15. During the 1 year the company paid a dividend of $1.12 per share and the share price closed the year at $67.87. What was your dollar return on the investment? What is your percentage return? 2. Why is diversification an important concept in finance? Using the following, calculate the average returns and the standard deviations for X and Y. Which share will perform better next year? 3. Return on Y 32% -5% 17% -12% 45% Year Return on X 14% 21% 17% 9% 23%

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