Part A)

What is the expected return for Stock A? Stock A Return: 33% 20% 15% 0% Stock B Return: 60% 30% 5% -20% Probability: 0.1 0.2 0.4 0.3 Use these numbers for Question 18 - 21.

A. 9.2%

B. 10.2%

C. 11.3%

D. 12.3%

E. 13.3%

Part B) What is the expected return for Stock B?

A. 8.0%

B. 8.7%

C. 9.4%

D. 10.3%

Part C) What is the expected return of a portfolio consisting of 50 percent of each stock?

A. 10.12%

B. 10.65%

C. 11.37%

D. 11.92%

Part D) What is the coefficient of variation (CV) for Stock A? Hint: the standard deviation of Stock A is 10.1%.

A. 0.62

B. 0.76

C. 0.87

D. 0.92