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Consider the following two investment alternatives. First, a risky portfolio that pays 15% rate of return with a probability of 60% or 5% with a

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Consider the following two investment alternatives. First, a risky portfolio that pays 15% rate of return with a probability of 60% or 5% with a probability of 40%. Second, a treasury bill that pays 6%. The risk premium on the risky investment is Consider a Treasury bill with a rate of return of 5% and the following risky securities: A: E(n)=0.15 with stand deviation=0.245 B: E(r)=0.12 with stand deviation=0.15 C: E(r)=0.11 with stand deviation=0.316 D: E(r)=0.11 with stand deviation=0.25 The investor must develop a complete portfolio with the risk-free asset and one of the securities mentioned above. Which security will give her the complete portfolio to achieve the best CAL? Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.04 per share. Hornberger has a return on equity of 11.80%. What percentage of its earnings does Hornberger plow back into the firm? (Round your answer to 2 decimal places.) Plowback ratio % Consider the following two investment alternatives. First, a risky portfolio that pays 15% rate of return with a probability of 60% or 5% with a probability of 40%. Second, a treasury bill that pays 6%. The risk premium on the risky investment is Consider a Treasury bill with a rate of return of 5% and the following risky securities: A: E(n)=0.15 with stand deviation=0.245 B: E(r)=0.12 with stand deviation=0.15 C: E(r)=0.11 with stand deviation=0.316 D: E(r)=0.11 with stand deviation=0.25 The investor must develop a complete portfolio with the risk-free asset and one of the securities mentioned above. Which security will give her the complete portfolio to achieve the best CAL? Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.04 per share. Hornberger has a return on equity of 11.80%. What percentage of its earnings does Hornberger plow back into the firm? (Round your answer to 2 decimal places.) Plowback ratio %

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