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Please help, I will thumb up for your support 1. www.chegg.com/homework-help/questions-and-answers/please-help-thumb-support-similar-type-questions-like-posted-eariler-1-wwwcheggcom-homewor-q88182018 2. www.chegg.com/homework-help/questions-and-answers/please-help-thumb-support-question-12-company-conducts-following-capital-payout-raising-po-q88181298 3. www.chegg.com/homework-help/questions-and-answers/question-9-firm-debt-equity-ratio-1-1-firm-s-debt-beta-03-five-year-government-bonds-yield-q88180958 4. www.chegg.com/homework-help/questions-and-answers/please-help-thumb-support-similar-type-question-1-wwwcheggcom-homework-help-questions-answ-q88182404 Question 7 b ) An investor has a

Please help, I will thumb up for your support

1. www.chegg.com/homework-help/questions-and-answers/please-help-thumb-support-similar-type-questions-like-posted-eariler-1-wwwcheggcom-homewor-q88182018

2. www.chegg.com/homework-help/questions-and-answers/please-help-thumb-support-question-12-company-conducts-following-capital-payout-raising-po-q88181298

3. www.chegg.com/homework-help/questions-and-answers/question-9-firm-debt-equity-ratio-1-1-firm-s-debt-beta-03-five-year-government-bonds-yield-q88180958

4. www.chegg.com/homework-help/questions-and-answers/please-help-thumb-support-similar-type-question-1-wwwcheggcom-homework-help-questions-answ-q88182404

Question 7 b )

An investor has a portfolio of two assets A and B. The details are shown in the below table.

Portfolio Details

Asset

Expected

return

Standard

deviation

Covariance (A, B)

Expected

Portfolio Return

A

0.02

0.4

0.12

0.08

B

0.06

0.8

Which one of the following statements is NOT correct?

a. The portfolio weight in asset A is -50%.

b. The standard deviation of the portfolio is 1.14.

c. The asset A could represent a share or a bond.

d. The correlation of asset A and Bs returns is 0.375.

e. The portfolio has no diversification at all since the covariance between two assets is positiv

Question 06:

Which of the following would reduce a firm's WACC after tax?

a. A firm significantly improves its operating cost control to boost profits.

b. A firm invests in an average-risk project using equity, rather than debt financing.

c. A firm issues bonds and uses the proceeds to repurchase stock.

d. A firm issues shares and uses the proceeds to pay off a bank loan.

e. A supermarket chain decides to establish hardware stores which increase its systematic risk

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