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John’s portfolio consists of $1000 in XYZ stock and $4000 in ABC. Historically XYZ has had an average return of 16% annually with a standard deviation of 30%. Historically ABC has an average return of 24% annually with a standard deviation of 40%. The correlation between the 2 stocks has been 0.4.
a) What is the expected return (based on historical averages) of John’s portfolio
b) What is the standard deviation of John’s portfolio?
Giant co. has issued preferred stock with a par value of $100 and an annual dividend rate of 8.53 percent. if your required rate of return is 7.18 percent, how much will you be willing to pay for one share of this preferred stock?
The price elasticity of demand is: The demand curve for physician office visits is quite inelastic; therefore, a:
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Carlyle chemicals are evaluating a new chemical compound used in the manufacture of a wide range of consumer products. The firm is concerned that inflation in the cost of raw materials will have an adverse effect on the projects cash flow. Specifical..
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