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07) Astock has monthly returns of 25.45%, -4.11%, 10.95%, and 15.39%. What the stock's geometrio average return? (2 points) 08) A stock has an expected retum of 18.98% and a standard deviation of 19.61% Compute the following for this stock: a) Upper range of 68% confindence interval : (0.5 points) b) Lower range of 68% confidence interval: (0.5 points) e) Upper range of 95% confindence interval : (0.5 points) d) Lower range of 95% confidence interval: (0.5 points) c) Upper range of 99% confindence interval : (0.5 points) 1) Lower range of 99% confindence interval: (0.5 points) 09) There is a 47 28% probability of a below.average economy and a 52.72% probability of an average economy. If there is a below average economy, Stocks A and B will have retums of 9.85% and 8.10%, respectively. If there is an average economy, Stocks A and B will have returns of 13.84% and 10.76%, respectively, Compute the following for Stocks A and B: a) Stock A Expected Retum : (1 point) b) Stock B Expected Return : (I point) c) Stock A Standard Deviation: (1.5 points) d) Stock B Standard Deviation : (1.5 points) Q10) There is a 13.08% probability of an average economy and a 86.92% probability of an above average economy. You invest 40.90% of your money in Stock S and 59.10% of your money in Stock T. In an average economy the expected returns for Stock Sand Stock Tare 10.89% and 6.26%, respectively. In an above average economy the the expected returns for Stock Sand Tare 23.37% and 27.47%, respectively. What is the expected return for this two stock portfolio? (2.0 points) Q11) You are invested 13.41% in growth stocks with a beta of 1631, 26.13% in value stocks with a beta of 1376 and 60.46% in the market portfolio What is the beta of your portfolio? (1.0 points) Q12) An analyst gathered the following information for a stock and market parameters: stock beta - 1 290 ; expected return on the Market 3.12%; expected return on T-bills - 4.73%; current stock Price - 57.58; expected stock price in one year $13.58; expected dividend payment next year - $225.Calculate the required return and expected return for this stock, a) Required Retum : (10 points) b) Expected Return (1.0 points) O A

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