Question: 195. State Probability Returns on A Return on B Boom .6 0.15 0.08 Bust .4 0.05 0.20 What is the standard deviation of security A?
195. State Probability Returns on A Return on B Boom .6 0.15 0.08 Bust .4 0.05 0.20 What is the standard deviation of security A? A. 0.02% B. 0.06% C. 4.9% D. 5.45% E. 6%
216. XYZ Investment Corporation is considering a portfolio with 70% weighting in a cyclical stock and 30% weighting in a countercyclical stock. It is expected that there will be three economic states; Good, Average and Bad, each with equal probabilities of occurrence. The cyclical stock is expected to have returns of 25%, 5% and 1% in Good, Average and Bad economies respectively. The countercyclical stock is expected to have returns of -8%, 2% and 14% in Good, Average and Bad economies respectively. Given this information, calculate portfolio standard deviation. A. 9% B. 8% C. 7% D. 6% E. 5%
92. The Windsor Group has paid dividends of $0.50, $0.60, $0.75, $0.90, and $0.99 over the past five years, respectively. Based on this information, D1can be estimated as _____ and g can be estimated as ______ for use in the dividend growth model. A. $.99; 18.75% B. $1.08; 9% C. $1.08; 20% D. $1.18; 10% E. $1.18; 18.75%
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