Reference no: EM132835873

Problem 1: If you consider the Average Annual Returns for U.S. the following investment categories between 1926-2014, which one has the highest volatility?

a. The S&P 500
b. Bank Savings accounts
c. Corporate Bonds
d. Treasury Bills
e. Small Stocks

Problem 2: Software, Inc. has a 10% probability of a 12% return, a 50% probability of a 10% return,and a 40% probability of a 2% return, what is the expected return?

a. 6.2%
b. 6.85%
c. 7%
d. 8%
e. 13%

Problem 3: Software, Inc. has a 10% probability of a 12% return, a 50% probability of a 10% return,and a 40% probability of a 2% return, what is the standard deviation?

a. 1.34%
b. 2.86%
c. 3.86%
d. 4.12%
e. 12.86%