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You have collected the following returns data: year 2018 return=5%; year 2019 return=-3%; year 2020 return=10%. What is the average return for this security? 3.00%

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You have collected the following returns data: year 2018 return=5%; year 2019 return=-3%; year 2020 return=10%. What is the average return for this security? 3.00% 3.20% 4.00% 5.00% Suppose that your friend has decided to construct a portfolio that will contain stocks X and Y. The standard deviations of stock X and stock Y are 12% and 16% respectively, and the correlation between stock X and stock Y is 0.6. Your friend has decided to put 40% of his money on stock X and the rest on stock Y. What is the standard deviation of his portfolio? 8.59% 09.03% 10. % 13.06% Bond PQR has a face value of $1000 and pays coupon on an annual basis. The coupon rate is 10% and the YTM is 8%. The bond will mature in 5 years. If the YTM suddenly increases to 10%, which of the following is true? The price of the bond goes down The bond trades at a discount The price of the bond goes up None of the above

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