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Please answer both :) QUESTION 1 Find the expected return of the portfolio: Booming Economy - 30% probability - 12% expected return Steady Economy -
Please answer both :)
QUESTION 1 Find the expected return of the portfolio: Booming Economy - 30% probability - 12% expected return Steady Economy - 50% probability - 6% expected return Bust Economy - 20% probability - -1% expected return 5.8% 6.0% 6.6% 6.4% QUESTION 2 Which of the following is TRUE regarding the cost of capital? The cost of capital is the minimum required return to satisfy debt/equity holders The cost of capital does not take into account taxes The cost of debt is the same as the cost of capital None are correctStep by Step Solution
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