1. You put up $50 at the beginning of the year for an investment. The value of the investment grows 4% and you earn a dividend of $3.50. Your HPR is?

1. 4.00%
2. 3.50%
3. 7.00%
4. 11.00%

2. You have calculated the historical dollar weighted return, annual geometric average return and annual arithmetic average return. If you desire to examine the real average return for you during the investment period, the best measure will be given by the ____.

1. Dollar weighted return
2. Geometric average return
3. Arithmetic average return
4. Index return

3. Your investment has a 20% chance of earning a 10% rate of return, a 50% chance of earning a 10% rate of return and aa 30% chance of losing 9%. What is your expected return of this investment?

A. 12.8%

B. 4.3%

C. 8.9%

D. 9.2%

4. You invest 10,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 10% and a standard deviation of 21% and a treasury bull with a rate of return of 5%. How much money should be invested in the risky asset to form a portfolio with an expected return of 7%?

5. You have the following a stock for 5 years and the following is its past returns:

Year 1: -15%

Year 2: -10%

Year 3: 15%

Year 4: 5%

Year 5: 10%

Assume normal distribution, what is Value of (Var) at 5% for this stock?