test 2 review - Probability Pessemistic Most Likely...

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Asset AProbabilityProbabilityReturns (%)Pessemistic0.2510.00Most Likely0.4512.00Potomostic0.316.00Expected Value12.70Standard Deviation2.30Coefficient of Variation0.181
Dividend234End Value18Initial Value2412.5%1.    Nico bought 100 shares of Cisco Systems stock for $24.00 per share on January 1, 2002. He received a dividend of $2.00 per share at the end of 2002 and $3.00 per share at the end of 2003. At the end of 2004, Nico collected a dividend of $4.00 per share and sold his stock for $18.00 per share. What was Nicoʹs realized holding period return?
AmountReturn %Return RateR$ 25,000 12% $ 3,000 J$ 10,000 18% $ 1,800 K$ 15,000 8% $ 1,200 Portfolio$ 50,000 12% $ 6,000 21. An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K; $25,000 will be invested in asset R, with an expected annual return of 12 percent; $10,000 will be invested in asset J, with an expected annual return of 18 percent; and $15,000 will be invested in asset K, with an expected annual return of 8 percent. The expected annual return of this portfolio is0.12
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