Batman Stock has exhibited a standard deviation in share returns of 0.5, whereas Superman Stock has exhibited a standard deviation of 0.6. The correlation coefficient between the share returns is 0.5. What is the variance of a portfolio composed of 70 per cent Batman and 30 per cent Superman?

Select one:

A.0.1549

B.0.2179

C.0.4668

D.0.5500

The cost of equity: Ultra Flex Diving Boards Ltd just paid a dividend of $1.50. If the company's growth in dividends is expected to remain at a flat 5 percent forever, then what is the cost of equity capital for Ultra Flex Diving Boards if the price of its ordinary shares is currently $26.00?

Select one:

A.5.77%

B.11.00%

C.9.77%

D.10.00%