10If a firm earns the WACC on its assets, then:

Select one:

a. equityholders will be satisfied, but bondholders will not.

b. bondholders will be satisfied, but equityholders will not.

c. all investors will earn their minimum required rate of return.

d. the firm is investing in only positive NPV projects.

e. None of the solutions is correct.

6What is the standard deviation of returns of a portfolio that produced returns of 10%, 15%, 25%, and 30%?

Select one:

a. 31.1%

b. 62.5%

c. 7.9%

d. None of the solutions is correct.

e. 5.2%