1. Which of the four stocks in the table above has the highest expected return?

   • Question 1

     10 Points

     1. Scribe Plc

     2. Leaf Plc

     3. Press Plc

     4. Bind Plc

2. Question 2

   10 Points

   Which of the four stocks in the table above has the lowest standard deviation of returns?

   1. Scribe Plc

   2. Leaf Plc

   3. Press Plc

   4. Bind Plc

3. Question 3

   10 Points

   What is the correlation between returns for Leaf Plc and Press Plc?

   Ensure that all figures used are rounded to no less than 3 decimal places.

   Please do not enter any special characters in your answer other than, if applicable, a decimal point (e.g. no or , symbols).

   Hint: Correlation coefficients are bounded between -1 and 1.

4. Question 4

   10 Points

   What is the expected return for an equally-weighted portfolio containing Scribe Plc, Leaf Plc, Press Plc, and Bind Plc?

   Ensure that all figures used are rounded to no less than 3 decimal places.

   Please do not enter any special characters in your answer other than, if applicable, a decimal point (e.g. no or , symbols).

   Please provide your answer in decimals, e.g. an answer of 6.2% should be entered as 0.062.

5. Question 5

   10 Points

   What is the standard deviation of returns for a portfolio comprising 40% Leaf Plc and 60% Press Plc?

   Ensure that all figures used are rounded to no less than 3 decimal places.

   Please do not enter any special characters in your answer other than, if applicable, a decimal point (e.g. no or , symbols).

   Please provide your answer in decimals, e.g. an answer of 6.2% should be entered as 0.062.

Please refer to the following table when attempting questions 1 to 5 The following table shows the return achieved by four individual stocks over four consecutive periods: Return Stock Period 1 Period 2 Period 3 Period 4 Scribe Plc 2% -1% 1% 2% Leaf Plc 4% 2% -3% 4% Press Plc 6% -1% -1% 3% Bind Plc 11% -4% 5% 6%