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O d. 32.66% (plus or minus 0.10 percentage points) The expected standard deviation can not be estimated because the probability of the bad outcome is not given or the standard deviatic Oe can be computed from the given information, but none of the above is within 0.10 percentage points of the correct answer QUESTION 3 A stock had returns of 12%, -14%, and 12% in each of the past three years. Over the past four years, the arithmetic average annual return for the stock was 14.0%. What was the geometric return for the stock over the past four years? Note that individual stock returns are only given for each of the past three years, but that the question asks about the geometric return over the past four years. O a. 12.03% (plus or minus 0.02 percentage points) O b. 2.56% (plus or minus 0.02 percentage points) c. 5.31% (plus or minus 0.02 percentage points) d. 14.00% (plus or minus 0.02 percentage points) Oe. None of the above is within 0.02 percentage points of the correct answer QUESTION 4 Lincoln owns a portfolio that has a value of $32,000 and consists of 3 stocks. He has $8,000 worth of stock A, which has a beta of 2.40; he has 1,200 shares of stock B, which has a share price of $8.00 and a beta of 0.80; and he has some stock C, which has a beta of 0.20. What is the beta of Save AN Answers Click Save and Submit to save and submit. Click Save All Answers to save all answers

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