15.Perry purchased 100 shares of Ferro, Inc. common stock for $25 per share one year ago. During the year, Ferro, Inc. paid cash dividends of $2 per share. The stock is currently selling for $30 per share. If Perry sells all of his shares of Ferro, Inc. today, what rate of return would he realize?A)28%B) 42%C) 1%D) 100%P0= $25P1 = $30D1 = $2Return = (Capital gain + Dividend) / P0Return = (30-25+2)/25 = 7/25 = 28%
16.The larger the difference between an assetʹs worst outcome from its best outcome, the higher the risk of the asset.
17.The lower the coefficient of variation, the greater the risk and therefore the higher the expected return.
18.________ probability distribution shows all possible outcomes and associated probabilities for a given event.
19.The expected value, standard deviation of returns, and coefficient of variation for asset A are (See below.)A) 10 percent, 8 percent, and 1.25, respectively.B) 9.33 percent, 8 percent, and 2.15, respectively.C) 9.35 percent, 4.68 percent, and 2.00, respectively.D) 9.35 percent, 2.76 percent, and 0.295, respectively.