Long Questions 13. (а) Jisoo is considering ihe investment opportunities of a stock. After detail analysis, She concluded that there are only five possible return in the coming year. The probability of getting these five possible returns are stated in the following table. Return (%) -9 -5 3 4 10 Probability 0.05 0.2 0.1 X 0.25 (i) What is the value of "X" in the table above? (ii) What is the expected return of this stock?

If You have this information about return of stock in 3 periods: -12%, 20% and 25%. calculate: The arithmetic average. The geometric average.

Long Questions 13. (a) Jisoo is considering the investment opportunities of a stock. After detail analysis, She concluded that there are only five possible return in the coming year. The probability of getting these five possible returns are stated in the following table. Return (%) -9 -5 3 4 10 Probability 0.05 0.2 0.1 0.25 (i) What is the value of "X" in the table above? marks) (ii) What is the expected return of this stock?

Probability

What is interest?

Treasury bill yield. An investor purchased a 91 day, $100,000 T-bill on its issue date for $99,180.46. After holding it for 40 days, she sold the T-bill for a yield of 3.778% (This yield refers to the rate of return the buyer will receive on the T-bill.) (a) What was the original yield on the T-bill? (Provide a percentage correct to 3 decimal places.) (Do not include the % sign in your answer.) Original yield = (b) For what price was the T-bill sold? (Do not include the $ sign in your answer.) Price T-bill sold for = (C) How much profit did the investment dealer make on this T-bill? (Do not include the $ sign in your answer.) Profit made by dealer = (d) What rate of return (per annum) did the investor realize while holding this T-bill? (Provide a percentage correct to 3 decimal places.) (Do not include the % sign in your answer.) Original yield = Check

a. a(n) = 13 b. a(n) = 13* a(n) = 13n Oc. d. a(x) = 13%?

c. Predict sales in 15 years.

Question

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