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You wish to invest and the options are as follows: Stock A Potential price Potential dividend 1 1 . 5 3 1 . 0 2

You wish to invest and the options are as follows:
Stock A Potential price Potential dividend
11.531.02
Current Price 6.536.530.53
4.530.17
Stock B Potential price Potential dividend
4.530.17
Current Price 6.536.530.53
11.531.02
Suppose you buy 1 share of Stock A and 1 of Stock B.
5. What is your expected return?
A Between 10.0% and 18.0%
B Between 18.0% and 23.0%
C Between 23.0% and 29.0%
D Between 29.0% and 35.0%
6. What is the standard devaition of possible returns?
A Between 0.0% and 8.0%
B Between 8.0% and 10.0%
C Between 10.0% and 13.0%
D Between 13.0% and 20.0%

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