# Question

Consider the following information:

a. Your portfolio is invested 40 percent each in A and C, and 20 percent in B. What is the expected return of the portfolio?

b. What is the variance of this portfolio? The standard deviation?

a. Your portfolio is invested 40 percent each in A and C, and 20 percent in B. What is the expected return of the portfolio?

b. What is the variance of this portfolio? The standard deviation?

## Answer to relevant Questions

Filer Manufacturing has 7.5 million shares of common stock outstanding. The current share price is $49, and the book value per share is $4. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a ...This is a comprehensive project evaluation problem bringing together much of what you have learned in this and previous chapters. Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a ...Tool Manufacturing has an expected EBIT of $24,000 in perpetuity and a tax rate of 35 percent. The firm has $65,000 in outstanding debt at an interest rate of 8.5 percent, and its unlevered cost of capital is 13 percent. ...Assume a firm’s debt is risk-free, so that the cost of debt equals the risk-free rate, Rf . Define βA as the firm’s asset beta, that is, the systematic risk of the firm’s assets. Define βS to be the beta of the ...What are the sources of the agency costs of equity?Post your question

0