What is the expected return of a stock under the following three scenarios? Scenario 1: HPR=.25, Probability=.20; Scenario 2: HPR=.50, Probability=.15; Scenario 3: HPR = .25, Probability=.65.

13.76%

28.75%

65.00%

15.00%

Question 391 pts

A stock has the following annual returns over each of the past five years: .12, .15, .16, .078, .097. If the stock's geometric average is 12.06%, what does this mean?

The stock earned $12.06.

The stock's HPR is 12.06%.

12.06% is the annual yield that is equal to the actual returns of the investment (accounts for compounding but not total dollar amounts).

The stock earned AT LEAST 12.06% (but may have earned more).

Question 401 pts

Julia purchased stock in GE three years ago. She has collected $27 in total dividends over the last three years. GE stock has risen from the original purchase price of $32 to a current price of $41. Julia sells the stock at $41. Calculate her holding period return on this investment.

112.50%

28.00%

37.52%

33.66%