15. (TCO 8) You would like to create a portfolio that is equally invested in a r

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15. (TCO 8) You would like to create a portfolio that is equally invested in a risk-free asset and two stocks. The one stock has a beta of .80. What does the beta of the second stock have to be if you want the portfolio risk to equal that of the overall market? (Points : 4) 1.4 1.6 1.8 2.0 2.2 1. (TCO 8) Weak form market efficiency states that the value of a security is based on: (Points : 4) all public and private information. historical information only. all publicly available information. all publicly available information, plus any data that can be gathered from insider trading. random information with no clear distinction as to the source of that information. 2. (TCO 5) Royal Petroleum Co. can buy a piece of equipment that can be financed with debt at a cost of 6 percent (after-tax) and common equity at a cost of 18 percent. Assume debt and common equity each represent 50 percent of the firm's capital structure. What is the weighted average cost of capital? (Points : 4) between 3 and 9% exactly 12% more than 14% exactly 11% none of the above 3. (TCO 5, 6 and 7) An issue of common stock is expected to pay a dividend of $4.80 at the end of the year. Its growth rate is equal to eight percent. If the required rate of return is 13 percent, what is its current price? (Points : 4) $103.68 $36.92 $96.00 none of these 4. (TCO 5, 6 and 7) Which of the following is true regarding the cost of debt? (Points : 4) It is the return that the firm

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15. (TCO 8) You would like to create a portfolio that is equally invested in a risk-free asset and two stocks. The one stock has a beta of .80. What does the beta of the second stock have to be if you want the portfolio risk to equal that of the overall market? Answer: 2.2 You need to break this post in one question per post, it hard to understand what questions are.

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