# choices choices The beta of Middle Earth Inc. stock is 1.6, and the risk-free
rate of return is 8 percent. If the expected return on the stock
market is 15 percent, then what is the expected rate of return on Middle
Earth Inc. stock? A. 24.0% B. 32.0% C. 12.8% D. 11.2% E. 19.2%Gimli
purchased a share of stock for \$22 one year ago. During the time he
owned the stock it paid \$.97 in dividends. He just sold the stock for
\$25.30, what was his holding period of return? A. 15.0% B. 19.4% C. 4.4% D. 16.9% E. 3.8%Security analysts have evaluated
Orc Industries and determined that there is a 15% chance that the firm
will generate earnings per share of \$2.40 next year; a 60% chance that
the firm will generate earnings of \$3.10 per share; and a 25% chance
that the firm will generate earnings of \$3.80 per share. What are the
expected earnings per share for Orc Industries? (Round to the nearest
\$.01) A. \$2.81 B. \$1.86 C. \$2.91 D. \$3.17 E. \$3.10Question 7You are analyzing a project and estimate that it has the following potential return scenarios:Return Probability12% 15%10% 50%7% 35%What is the expected rate of return on this project? (rounded to the nearest tenth of a percent) A. 7.5% B. 9.3% C. some other amount. D. 10% E. 9.7%What
is the expected rate of return of Tolkien Industries stock given the
risk free rate of return is 3% and the market rate of return is 11%.
The company has a historical beta of .80. A. 6.4% B. 14% C. 2.4% D. 8.8% E. 9.4%Dwarf
Brothers stock was priced at \$15 per share two years ago when
purchased. It now sells for \$18 per share. In the last year the stock
paid \$1.00 per share in dividends. What was the total return for owning
Dwarf Brothers stock? (Round to the nearest percent). A. 27% B. 20% C. 22% D. 7% E. 33%Which
stock has the greater variation in price? Stock A, has a standard
deviation of 4; Stock B, which has a standard deviation of 6; Stock C
which has a standard deviation of 5. A. Stock C B. Stock B C. Can’t tell with the information given. D. Stock A