# Question: Consider the following information a Your portfolio is

Consider the following information:

a. Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio?

b. What is the variance of this portfolio? The standarddeviation?

a. Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio?

b. What is the variance of this portfolio? The standarddeviation?

## Answer to relevant Questions

You own a portfolio equally invested in a risk free asset and two stocks. If one of the stocks has a beta of 1.27 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your ...A stock has a beta of 1.25 and an expected return of 14 percent. A risk-free asset currently earns 2.1 percent. a. What is the expected return on a portfolio that is equally invested in the two assets?b. If a portfolio of ...Why do we use an after tax figure for cost of debt but not for cost of equity?Erna Corp. has 8 million shares of common stock outstanding. The current share price is $73, and the book value per share is $7. Erna Corp. also has two bond issues outstanding. The first bond issue has a face value of $85 ...Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate is 34 percent, what is the after tax cost of Ying’sdebt?Post your question