k of Alpha Cycles, Inc. are quite cyclical. In a boom economy, the stock is expected to return 33.0% in comparison to 11.0% in a normal economy and negative 13.0% in a recessionary period. The probability of a recession is 13% while the probability of a boom is 22%. The remainder of the time the economy will be at normal levels. What is the standard deviation of the returns on this stock? Multiple Choice 1736% 6.95% Shirley's and Son has a target debtequity ratio of 1.4 . The firm's cost of debt is 5.5% and the cost of equity is 14%, The compary has a 35% tax rate. What is the firm's weighted average cost of capital? Multiple Choice 792% 8.24% 10.93% You have a $1,000 portfolio which is invested in stocks A,B, and a risk-free asset. $400 is invested in stock A Stock A has a beta of 1,36 and stock B has a beta of 0.70 . How much needs to be invested in stock B if you want a portfolio beta of 0.92 ? Multiple Choice 537 188 876 You have a portfolio consisting solely of stock A and stock B. The portfolio has an expected return of 1311%. Stock A has an expected return of 17% while stock B is expected to return 6%. What is the portfolio weight of stock A ? Multiple Choice 478% 865% 6716