Your portfolio invests in the stock of two companies. Company A$\text{'}$s stock has a variance of $0\mathrm{.}25,$ while Company B$\text{'}$s stock has a standard deviation of $0\mathrm{.}30.$ The correlation between the two stocks is $0\mathrm{.}40.$ If $30\%$ of your portfolio is invested in Company A$,$ and $70\%$ in Company B$,$ what is the standard deviation of your portfolio?

a$.24\mathrm{.}96\%$

b$.30\mathrm{.}30\%$

c$.28\mathrm{.}50\%$

d$.28\mathrm{.}74\%$

A stock has a beta of $1\mathrm{.}3,$ and a market risk premium of $8\%.$ The risk$-$free rate is $4\%.$ What is the expected return on the stock?

a$.10\mathrm{.}4\%$

b$.12\mathrm{.}0\%$

c$.14\mathrm{.}4\%$

d$.13\mathrm{.}2\%$

You want to create a portfolio that is $80\%$ as risky as the market. You can choose to invest in either Stock B with a beta of $2$ or the risk$-$free asset. How much do you invest in Stock B$?$

a$.40\%$

b$.50\%$

c$.60\%$

d$.70\%$

Larry's Levers, a large manufacturer of crowbars, has a book value debt$-$to$-$equity ratio of $0\mathrm{.}30$ and a market value debt$-$to$-$equity ratio of $0\mathrm{.}5.$ The tax rate is $30\%.$ If the cost of equity is $13\mathrm{.}2\%,$ and the cost of debt is $7\mathrm{.}4\%,$ what is the firm's WACC?

a$.11\mathrm{.}35\%$

b$.10\mathrm{.}53\%$

c$.9\mathrm{.}19\%$

d$.$ None of the above