Can you please identify which of the following sources of capital you would generally expect to be the most costly for a corporation based on the risk - return hierarchy of financial securities. One being the most expensive in % terms to the corporation and 3 being the least expensive in % terms. Least Expensive 1. Preference Shares DOO Most Expensive 2. Ordinary Shares 3. Bank Debt Second Most Expensive Question 4 (8 points) The market portfolio Return (%) w Y E O X F G H RE B N A 0 Risk (standard deviation) The image attached represents the risk and returns for a variety of portfolios in stocks A, B, E, F, G, H & I along with risk free options. You are to identify in the following questions at what point the various investors will invest from the options W.XY&Z Y 1. Interested in investing in the optimum market portfolio of risk free assets and stock options Z 2. Risk Loving Investor 3. Only interested in Risk Free Assets. w 4. Risk fearing investor willing to take on a small amount of stock options. Question 5 (2 points) In a two share portfolio a correlation co-efficiency of which of the below figures result in full diversification of unsystematic risk. 01 00