What is the probability the stock will lose money

Reference no: EM13283801

Ambrose Industries stock has an average expected rate of return of 13.6% and a standard deviation of 11.8%. What is the probability the stock will lose money more than 10% in any one year? a. 0.5% b. 1.0% c. 2.5% d. 5.0% 2. A portfolio is equally invested in 2 stocks and a risk-free security. Stock A is equally as risky as the market and stock B has a beta of 1.24. What is the portfolio beta? a. 0.67 b. 0.75 c. 0.86 d. 0.91 3. A stock as a beta of 0.96 and a standard deviation of 8.3%. The market rate of return is 11.9% and the market risk premium is 7.4%. What is the expected return on the stock? a. 11.60% b. 11.81% c. 11.96% d. 12.13% (Please show work/explain how you arrived at the answer. I'd like to understand the material, not just get answers. I will rate on a first come, first serve basis, but PLEASE show your work. Thank you!)

Reference no: EM13283801

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