Author Question: An efficient portfolio is defined as ________. A) grouping of assets with same level of risk B) ... (Read 114 times)

TFauchery

  • Hero Member
  • *****
  • Posts: 500
An efficient portfolio is defined as ________.
 
  A) grouping of assets with same level of risk
  B) collection of assets with the aim of maximizing the return
  C) an investment in a single asset
  D) grouping of assets with the highest possible correlation

Question 2

Corporation X needs 1,000,000 and can raise this through debt at an annual rate of 10 percent, or preferred stock at an annual cost of 7 percent. If the corporation has a 40 percent tax rate, the after-tax cost of each is ________.
 
  A) debt: 100,000; preferred stock: 70,000
  B) debt: 60,000; preferred stock: 42,000
  C) debt: 60,000; preferred stock: 70,000
  D) debt: 100,000; preferred stock: 42,000



firehawk60

  • Sr. Member
  • ****
  • Posts: 315
Answer to Question 1

B

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

For a complete list of videos, visit our video library