Be sure to write the formulas used and substitute values. Show your work in detailed. Answers are 100% correct

11. You buy 100 shares of Pink Bismol, Inc. stock at $35 per share on a margin of 50 percent. If the price of Pink Bismol stock immediately rises to $50 per share, what is your percentage return? In other words, what is your percentage gain on the initial equity?

12. An investor is in the 28% tax bracket. A corporate bond has a before tax yield of 8%. What is the equivalent tax-exempt yield?

13. A taxpayers in the 28% tax bracket. For this taxpayer, what is the equivalent taxable yield on a municipal bond yielding 7%?

14. You are given the following set of data: Historical Excess Rate of Return Year NYSE Stock X 1 -9.3% -10.7% 2 5.4% 4.3% 3 16.8% 25.6% 4 -3.2% 0.3% 5 6.7% 6.9% Determine stock Xs beta coefficient.

15. Security A has a standard deviation of .64% and Security B has a standard deviation of 1.39%. If the correlation coefficient between the returns of the two securities is +0.86, what is the standard deviation of a portfolio that is invested 40% in A and 60% in B?

Answers

11. 85.7% 12. 5.76% 13. 9.72% 14. 1.281 15. 1.062%