VULJTIUI 3 The standard deviations and betas of four shares are as follows: Share Beta Standard Deviation (%) w 1.76 18 X 0.73 22 Y 0.72 17 Z 0.65 15 Which stock has the most total risk? We don't have enough information to answer the question Y OOOO Z w QUESTION 6 Consider two risky stocks. Stock A has an expected return of 12 percent and a standard deviation of 15. Stock B has an expected return of 14 percent and a standard deviation of 20 percent. The correlation coefficient between the two stocks is 0.7. What is the expected return of a portfolio where 60 percent of the capital is invested in stock A and 40 percent is invested in stock B? 14.9 10.9 14.9 14.6 12.8 QUESTION 7 Four months ago, you purchased 3600 shares of DDX stock for $39.0 a share. You have received dividend payments equal to $2.0 a share. Today, you sold all of your shares for $45.0 a share. What is your total dollar return on this investment? 31870 24779 28800 24600 32260 QUESTION 8 Over a certain period, large-company stocks had an average return of 16.4 percent, the average risk-free rate was 8.0 percent, and small-company stocks averaged 19.8 percent. What was the risk premium on small company stocks for this period? 8.4 11.8 OOO 3.4 27.8 19.8 QUESTION 9