Question
a. As a firm issues debt to buy back equity, how do the expected return and standard deviation of the equity change? b. As an
a. As a firm issues debt to buy back equity, how do the expected return and standard deviation of the equity change?
b. As an individual investors portfolio shifts out of risk-free debt and puts a fraction of the portfolio into the equity of a company, how do the expected return and standard deviation of the portfolio change?
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Personal Finance A Practical Approach
Authors: Jane King, Mary Carey
1st Edition
0199668833, 9780199668830
