QUESTION 9 Suppose you have a portfolio of two stocks, A and B. The standard deviation of A and B are 10.5 and 12.8% respectively. The beta of stock A and B are 1.2 and 0.87 respectively. Therefore you will pick stock B since it has a higher risk (standard deviation) of 12.8%, and it will offer an higher expected retum True False QUESTION 10 The cost of capital for a project depends on the uses of fund, True Falso QUESTION 11 White Linen Inc. had a tax rate of 35% in 2020 and the after-tax cost of debt was 5.2%. This year in 2021 the tax rate is 40%. Therefore, the weighted average cost of capital (WACC) for White Linen will be more than 5.2% True False Fais QUESTION 12 2 po The Dry Well has 6.85 percent preferred stock outstanding with a market value per share of $79, and a book value per share of $29. The cost of preferred stock, therefore is 8.67% (approx). True False