29. The expected return for Asset S is 15%, and it has a standard deviation of 9%. The expected return for Asset T is 24%, and it has a standard deviation of 14%. Which of the following is a CORRECT statement?

A. Asset S is the less risky investment of the two investments.

B. Asset T is the less risky investment of the two investments.

30. Seattle Best Company common stock is currently selling for $20 per share. Security analysts at Goldman Sachs have assigned the following probability distribution to the price of (and rate of return on) Seattle Best stock one year from now:

Price Rate of Return Probability $16 -20% 0.25 $20 0% 0.30 $24 +20% 0.25 $28 +40% 0.20 Assuming that Seattle Best is not expected to pay any dividends during the coming year, determine the expected rate of return on Seattle Best stock.

A. 8.25%

B. 8.00%

C. 20.90%

D. 40.00

31. An investor plans to invest 60 percent of her funds in the common stock of Mickey Company and 40 percent in Mini Company. The expected return on Mickey is 16 percent and the expected return on Mini is 12 percent. The standard deviation of returns for Mickey is 7 percent and for Mini is 11 percent. The correlation between the returns for Mickey and Mini is +0.81 (positive 0.81). Determine the standard deviation of returns for this investor's portfolio.

A. 8.60%

B. 13.20%

C. 8.18%

D. 9.17%

32. Common stockholders have numerous general rights, including all of the following EXCEPT:

A. Asset rights

B. Preemptive rights

C. Management Rights

D. Dividend Rights