1. A year ago, you purchased IBM stock for $39 a share. Today, IBM stock is selling for $41 a share. Additionally, you just received a check for $1.20 per share. Your holding period return is
2.34%
1.06%
-2.05%
2.13%
8.21%
2. If the probability of a 20% return is 0.7 and the probability of a 4% loss is 0.3, what is the expected return to the nearest whole percentage?
15%
17%
13%
2.5%
none of the above