compute the firm$-$specific variance and firm's specific standard deviation of a portfolio that minimizes the firmspecific variance of a portfolio of $20$ stocks. The first $10$ stocks have firm$-$specific variances of $.10.$ The second $10$ slocks have firm specific variances of $\mathrm{.}05.$

Suppose you are a manager who wants to retain as much as possible of the firm's earnings in order to increase

i$.$ the size of the firm. How would you react to proposals to repurchase shares that would make it less costly to distribute cash to shareholders?

Assume the total cost of a college education will be $$290,000$ when your child enters college in $18$ years. You

presently have $$55,000$ to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education?