Create a portfolio as risky as the market

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Question 10
You want to create a portfolio as risky as the market. Suppose you invest your money in Stocks A, B, C, and the risk-free asset. What is the weight of Stock C in your portfolio?

Stock Weights(%) Beta

A 27 1.2

B 16 0.3

C ? 1.5

Rf ? ?

Question 18
A firm has a return on equity of 14.6 percent, a net profit margin of 8.4 percent, and total equity of $553.9. What is the net income?
.

Question 19
ABC Company has a debt-equity ratio of 0.77. What is the debt ratio?

Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Question 20
ABC, Inc. has 6 percent bonds outstanding that mature in 20 years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $814 each. What is the firm's after-tax cost of debt if the tax rate is 21%?

Enter your answer as a percentage rounded off to two decimal points.

Reference no: EM13297890

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