Question: QUESTION 4 Investors require lower expected return as compensation for taking risks True False QUESTION 5 Consider Fancy, Inc. stock. Based on the probability of

QUESTION 4 Investors require lower expected return as compensation for taking risks True False QUESTION 5 Consider Fancy, Inc. stock. Based on the probability of economic outlooks, Fancy, Inc. stock is expected to earn 11.35% in the upcoming year with a standard deviation of 5.83%. What is the coefficient of variation for Fancy, Inc for returns in the upcoming year? The correct formula is standard deviation divided by expected return. See Section 8-2D. Round your answer to the nearest two decimals. QUESTION 6 Sandy just submitted a trade to sell her shares of Facebook. Which of the following measure the gain or loss on her investment? risk aversion standard deviation coefficient of variation reinvestment rate risk realized rate of return O expected return

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