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John is considering adding two stocks to his portfolio that have the same standard deviation and are in the same industry. Adding both stocks to the portfolio will most likely ______.

The market risk premium for next period is 6.50% and the risk-free rate is 3.60%. Stock Z has a beta of 0.839 and an expected return of 9.90%. Calculate the following. Please write your answers as percentages (e.g. .1234 should be written as 12.34): Market’s reward-to-risk ratio: [1]% Stock Z’s reward-to-risk ratio: [2]%

Which one of the following categories of securities has had the most volatile returns over the period 1926 to 2005?

There is a  48.90%  probability of an average economy and a  51.10%  probability of an above average economy.  You invest  24.32%  of your money in Stock S and  75.68%  of your money in Stock T.  In an average economy the expected returns for Stock S and Stock T are  14.14%  and  6.16% , respectively.  In an above average economy the the expected returns for Stock S and T are  38.90%  and  32.13% , respectively.  What is the expected return for this two stock portfolio? (2.0 points) Please write your answer as percentage (e.g. .1234 should be written as 12.34): Expected Return: [1]%

A stock has an expected return of  11.10%  and a standard deviation of  9.79%. Compute the following for this stock: (Please write all answers as percentages (e.g. .1234 should be written as 12.34): Upper range of 68% confidence interval: [1]% Lower range of 68% confidence interval: [2]% Upper range of 95% confidence interval: [3]% Lower range of 95% confidence interval: [4]% Upper range of 99% confidence interval: [5]% Lower range of 99% confidence interval: [6]%

You are invested 30.10% in growth stocks with a beta of 1.944, 11.50% in value stocks with a beta of 1.180, and 58.40% in the market portfolio.  What is the beta of your portfolio? After completing all calculations, please round your answer to four decimal places. Beta: [1]

The principle of diversification tells you that ______.

Magnetic Corporation expects dividends to grow at a rate of 10.23% for the next two years. After two years, dividends are expected to grow at a constant rate of 6.52% , indefinitely. Magnetic’s required rate of return is 10.49% and they paid a $2.35 dividend today. Compute the following for Magnetic Corporation’s common stock: Compute the following for Magnetic Corporation’s common stock: Dividend at the end of year 1: $[1] Dividend at the end of year 2: $[2] Dividend at the end of year 3: $[3] Price of stock at the end of year 2: $[4] Price of stock today: $[5]

The current price of Janco stock is  $6.84 .  Dividends are expected to grow at  6.64%  indefinitely and the most recent dividend paid yesterday was  $3.82. Compute the following for Janco stock:  Please write your answers as a percentage (e.g. .1234 should be written as 12.34): The required rate of return: [1]% The dividend yield: [2]% Capital gains yield: [3]%

The market risk premium for next period is  5.84%  and the risk-free rate is  3.03% .  Stock Z has a beta of  1.063  and an expected return of  11.62%. Compute the following. After completing all calculations, please round your answers to four decimal places.  Market’s reward-to-risk ratio: [1] Stock Z’s reward-to-risk ratio: [2]