You own the following portfolio of equities. What is the portfolio weight of security J?

H=600 shares, 44 per share

I=450 shares, 57 per share

J=720 shares, 29 per share

K=80 shares, 120 per share

The equity of BBB Plc has a beta of 0.95. The expected return on the market is 12%, while the risk-free rate of return is 3%. According to CAPM, what is the expected return on the equity of BBB Plc?

ABX Ltd. has 2.5 million shares of equity outstanding. The equity currently sells for 9 per share. The firms debt is publicly traded and was recently quoted at 95 per cent of face value. It has a total face value of 12 million, and it is currently priced to yield 9 per cent. The risk-free rate is 7 per cent, and the market risk premium is 12 per cent. Youve estimated that ABX Ltd. has a beta of .85. If the corporate tax rate is 35 per cent, what is the WACC of ABX Ltd?

The returns on the ordinary equity of NPI Ltd. are quite cyclical. In a boom economy the equity is expected to return 15%, in a normal economy 12%, and in a recession 6%. The probability of a recession is 5%, while the probability of a boom is 30%. What is the standard deviation of returns on this equity?