21. Christy is considering investing in the common stock of One Liberty and Heico. The following data is available for these two values:

	a freedom	Hey there
expected return	.12	.sixteen
Standard deviation of returns	.08	.20

If you invest 30% of your funds in Heico and 70% in One Liberty, and if the return correlation between these stocks is +0.65, what is the standard deviation of the portfolio? (Points: 3)

Question 22. 22. Phoenix Company common stock is currently selling for $20 per share. Smith Blarney security analysts have assigned the following probability distribution to the price (and rate of return) of Phoenix stock one year from now:

Precio	Rate of return	Probability
$16	-20%	0.25
20	0%	0.30
24	+20%	0.25
28	+40%	0.20

Assuming that Phoenix is not expected to pay dividends during the next year, determine the expected rate of return on Phoenix stock. (Points: 3)

Question 23. 23. Phoenix Company common stock is currently selling for $20 per share. Smith Blarney security analysts have assigned the following probability distribution to the price (and rate of return) of Phoenix stock one year from now:

Precio	Rate of return	Probability
$16	-20%	0.25
20	0%	0.30
24	+20%	0.25
28	+40%	0.20

Assuming that Phoenix is not expected to pay dividends during the next year, determine the coefficient of variation of the rate of return on Phoenix stock. (Points: 3)

Question 24. 24. Calculate the after-tax cost of preferred stock for Ohio Valley Power Company, which plans to sell $100 million of $3.25 cumulative preferred stock to the public at a price of $25 per share. Float costs are $1.00 per share. Ohio Valley has a marginal income tax rate of 40%. (Points: 3)