Question: Question 8 Action Probability (Dollars) You expect the following set of possible outcomes for an investment of $120,000: Expected Return Taken 60% 40,000 Invest in

possible outcomes for an investment of $120,000: Expected Return Taken 60% 40,000

Invest in stocks 30% 10,000 10% -20,000 Invest in T-bill 100% 5,000

What is the variance of dollar returns for investing in T-bills? Please

Question 8 Action Probability (Dollars) You expect the following set of possible outcomes for an investment of $120,000: Expected Return Taken 60% 40,000 Invest in stocks 30% 10,000 10% -20,000 Invest in T-bill 100% 5,000 What is the variance of dollar returns for investing in T-bills? Please enter your answer rounded to the third decimal place. What is the covariance of dollar returns for investing in stocks with those for investing in T-bills? Please enter your answer rounded to the third decimal place. What is the expected risk premium in dollars for investing in stocks over the T-bill? The expected risk premium is the difference in expected dollar returns for stock minus the T-bill. Please enter your answer in dollars rounded to the nearest cent. What is the standard deviation of dollar returns for investing in T-bills? Please enter your answer in dollars rounded to the nearest cent. Selected Answer: 60

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