principles of corporate finance 英文第十版习题解答chap007.docVIP

CHAPTER 7 Introduction to Risk and Return Answers to Problem Sets 1. Expected payoff is $100 and expected return is zero. Variance is 20,000 (% squared) and standard deviation is 141%. 2. a. Standard deviation = 19.3% b. Average real return = -2.2% 3. Ms. Sauros had a slightly higher average return (14.6% vs. 14.4% for the market). However, the fund also had a higher standard deviation (13.6% vs. 9.4% for the market). 4. a. False b. True c. False d. False e. False f. True g. True h. False 5. d 6.  7. a. 26% b. zero c. .75