7. Your portfolio has invested 35% Biod into Biodynamics, Inc. which has a beta coefficient of 1.2 and an expected retum of18%) The remainder of the portfolio is in treasury bills that 7%. what is the beta coefficient of your portfolio? A. 0.30 B. 0.36 C. 0.42 D. 0.78 E, 0.90 Jordan Catrine, CEO of Costy Dance Studios,Inc. wants to maintain a target debt to asset ratio of 0.20. The overall WACC for the company is 18.6% and the cost of debt is 84% (before tax). Assuming a tax rate of 34%, what return do stockholders of Costy, Inc. stock require (cost of equity)? FORMAT TO FOUR DECIMAL PLACES 8. . 19.49% B. 21.86% C. 9.4% D. 18.6% E. 21.7% You have invested some of your retirement money in a new stock called Genetic Engineering, which has a beta coefficient of 2.0. If the risk free rate is 3% and the market risk premium is 6%, what is your expected return on Genetic Engineering? A. 10.20% B. 13.50% C. 17.00% D. 7.00% E. 15.00%