An investor purchases a share of Synovous Bank stock this morning for $2.80. The investor believes the economy will take one of three conditions in the coming year, and each condition will have an impact on the selling price of the stock. The investor's beliefs about the economy are shown below: OUTCOME: Probability Bad for Banks Moderate for Banks Good for Banks 0.37 0.38 0.25 Synovous Price in One Year $2.60 $2.96 $3.46 What is the standard deviation for Synovous returns (based on the investor's returns)? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)

Most ______ investments are not available to the general public. Money market mutual fund Closed-end fund Unit investment trust Hedge fund An order to the New York Stock Exchange to buy or sell at the best price available is called: A limit order A stop order A market order A GTC order.

16. The market consists of only two assets, A and B, with normally distributed re- turns. Asset A's returns have a mean of 18% and a standard deviation of 14% and Asset B's returns have a mean of 15% and a standard deviation of 18%. In such a scenario a risk-averse investor would always want to invest all of her money in Asset A.   17. A call option offers the purchaser limited downside loss as given by the option premium paid, combined with limited upside potential.   18. The return earned on a risk free portfolio must be equal to the risk free interest rate.   19. CAPM assumes that all investors' optimal portfolio has a fraction invested in the risk-free asset and the remaining in the minimum variance portfolio.   20. For any frontier portfolio p, except the minimum variance portfolio, there exists a unique frontier portfolio with which p has zero covariance.   21. The market portfolio of all available assets is the supply of risky assets.   22. An arbitrage opportunity is an…

A risk-averse consumer with $100,000 in wealth faces 0.1 probability of losing half of his wealth within the next year. a. What is the consumer's expected wealth one year from now? b. An insurance company offers our consumer full insurance against the possible loss. What premium must the consumer be charged for the insurance company to expect to break even?   c. Suppose our risk-averse consumer is indifferent between getting $85,000 wealth with certainty and facing the above described uncertain situation. What is the maximum premium that the insurance company will be able to charge this consumer for its full insurance policy?