Consider the following information for three stocks, a, b, and c. the returns on the stocks are positively but not perfectly correlated with one another, i. e., the correlation coefficients are all between 0 and 1. stock a: 10% (expected return), 20% (standard deviation), 1.0 (beta); stock b: 10%, 20%, 1.0; stock c: 12%, 20%, 1.4. portfolio ab has half of its funds invested in stock a and half invested in stock b. portfolio abc has one third of its funds invested in each of the three stocks. the risk-free rate is 5%, and the market is in equilibrium, so required returns equal expected returns. which of the following statements is correct? a. portfolio ab has a standard deviation of 20% b. portfolio ab's coefficient of variation is greater than 2.0. c. portfolio abc's expected return is 10.67%. d. portfolio abc has a standard deviation of 20%. e. portfolio ab's required return is greater than the required return on stock a.

Which of the following is located at the point where the supply and demand curves intersect? a. the equilibrium price. b. the minimum supply. c. the level of efficient production. d. the maximum demand. 2b2t

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Hundreds of a bank's customers have called the customer service call center to complain that they are receiving text messages on their phone telling them to access a website and enter personal information to resolve an issue with their account. what action should the bank take?