There are two portfolios and a risk-free asset (Notes) Portfolio Expected return (%) Standard Deviation (%) 8 10 B 12 20 Notes 4 0 rho(A,B) = 1, where rho is the correlation coefficient. What is the slope of the MVOS? Select one: O 5/2 O 2/5 O-2/4 O None of the options O-3/5 According to the efficient frontier, all investors will prefer to hold the same portfolio given their mean- variance preferences Select one: O True O It cannot be determined since the efficient frontier is not an empty set. O False In instances of a change of corporate control and therefore the possibility of changing dividend policy, which valuation model do you recommend? Select one: O DDM in O FCFE A maintenance margin of 38 percent means that the equity to asset ratio should always be below 38 percent Select one: O False O True O The problem does not provide sufficient information How an increase in dividend payout will affect the sustainable growth rate? Select one: An increase in dividend payout does not affect the sustainable growth rate. An increase in dividend payout increases the sustainable growth rate as more funds are reinvested in the firm. An increase in dividend payout reduces the sustainable growth rate as less funds are reinvested in the firm, O An increase in dividend payout increases the sustainable growth rate as more buybacks are promised to the shareholders