Question: Calculate expected return, variance and standard deviation (volatility) for a portfolio 60% invested in stock X and 40% invested in stock Z. Correlation of their

Calculate expected return, variance and standard deviation (volatility) for a portfolio 60% invested in stock X and 40% invested in stock Z. Correlation of their returns is 0.25 . 2. Luther Industries has 25 million shares outstanding trading at $18 per share. In addition, Luther has $150 million in outstanding debt. Suppose Luther's equity cost of capital is 13%, its debt cost of capital is 7%, and the corporate tax rate is 21%. Calculate its weighted average cost of capital

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