Question: Please Use BAII plus calculator for the equation calculation Q1) Assume that JQHs returns are normally distributed. The expected return for JQH is 10% and

Please Use BAII plus calculator for the equation calculation

Q1) Assume that JQHs returns are normally distributed. The expected return for JQH is 10% and standard deviation is 5%. What is the probability of JQH stock providing a return within the range 15% to 20%?

2.5%

16%

68%

13.5%

none

Q2) Returns on ABC, Inc. are forecast to be the following:

State

Probability

Return

Boom

0.25

30%

Normal

0.65

15%

Bust

0.10

-13%

What is the standard deviation of this companys stock?

11.82%

11.56%

11.32%

11.07%

10.83%

Q3) A portfolio is typically well-diversified when it contains:

No fewer than 100 stocks

No fewer than 50 stocks

No fewer than 30 stocks

Approximately 10 stocks

Approximately 100 stocks

Q)4

A stock provides the following returns:

Year 1

6%

Year 2

10%

Year 3

-5%

What is the geometric average return?

3.83%

3.47%

3.10%

2.74%

2.37%

Q5)

PQR Corporation has a Beta of 1.5. The risk-free rate is 6%, and the market risk premium is 10%. What is the required rate of return of PQR?

22.5%

21%

19.5%

18%

16.5%

Q7) Josh has a portfolio of two stocks, Stocks A has a Beta of 2.4 and stock B has a Beta of 0.9. Funds are allocated with 60% in Stock A and 40% in Stock B. if the T-bill rate is 4%, and the market expected return is 13%, what is the required return on the portfolio?

18.58%

19.12%

19.66%

20.20%

20.74%

Q8) Nancy has a portfolio of two stocks. Stock A has an expected return of 10% and stock B has an expected return of 12%. Her funds are allocated with 54% in stock A and 46% in stock B. What is the portfolio expected return?

8.38%

8.92%

9.46%

10.92%

10.54%

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