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An Investor buys a T-bill at a bank discount quote of 6.00 with 90 days to maturity. The Investor's actual annual rate of return on
An Investor buys a T-bill at a bank discount quote of 6.00 with 90 days to maturity. The Investor's actual annual rate of return on this investment is 6.18%6.38%6.09%6.01% An Investor purchases one municipal bond and one corporate bond that pay rates of return of 6% and 7.4%, respectively. If the investor is in the 15% tax bracket, his after-tax rates of return on the municlpal and corporate bonds would be, respectively, Multiple Choice 6% and 7.4% 6% and 6.29% 5.10% and 7.4% 6.90% and 6.29% An Investor can design a risky portfollo based on two stocks, A and B. Stock A has an expected return of 19% and a standard devlatlon of return of 36%. Stock B has an expected return of 14% and a standard deviation of return of 21%. The correlation coefficlent between the returns of A and B is .5. The risk-free rate of return is 7%. The proportion of the optimal risky portfollo that should be invested in stock B is approximately Multiple Choice 37% 50% 50% 63%
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