An efficient portfolio is defined as ________. A) grouping of ...

[TFauchery]

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]

Answer to Question 1

B

Answer to Question 2

C