You Have a Portfolio Which Is Comprised of 40% of Stock

question 72

Multiple Choice

You have a portfolio which is comprised of 40% of Stock A and 60% of Stock B. What is the portfolio standard deviation?
$\begin{array}{lllr}\text { State of the Economy } & \text { Probability } &\text {E(R) }_{A}&\text { E(R) }_{B}\\&&40\%&60\%\\\\\text { Boom }&.10&20\%&14\%\\\text { Normal } & .75 & 11\% & 9 \% \\\text { Recegsion } & .15& -20 \% & -5 \%\end{array}$

• A)4.00%
• B)5.56%
• C)6.06%
• D)6.82%
• E)7.95%

Determine the dividend yield of a stock and its impact on total return.

Understand the implications of dividend growth on stock valuation and investor's return.

Apply the constant dividend growth model to estimate a firm's dividend growth rate.

Identify the capital gains yield as part of the total return on an investment.

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Definitions:

Quantifier Negation

The process of negating the quantifiers in a statement, such as changing "all" to "not all" or "some" to "none".

Existential Generalization

A logical operation that infers the existence of at least one member of a domain that satisfies a certain property from a specific case.

Existential Instantiation

A logical principle that derives the existence of a particular instance of a predicate within a domain of discourse from a general statement.

Universal Instantiation

A logical rule stating that if something is true for everything in a certain set, then it is true for any specific thing in that set.