Suppose that in the coming year, you expect exxon-mobil stick to have a volatility of 42% and a beta of 0.9, and merck's stock to have a volatility of 24% and a beta of 1.1. the risk free interest rate is 4% and the market's expected return is 12%.

You have $22,000 to invest in a stock portfolio. your choices are stock x with an expected return of 11 percent and stock y with an expected return of 13 percent. if your goal is to create a portfolio with an expected return of 11.74 percent, how much money will you invest in stock x? in stock y?

Emily spent her summer vacation in buenos aires, argentina, where she got plastic surgery for a fraction of what it would cost in the united states. this is an example of:

Ummit record company is negotiating with two banks for a $157,000 loan. fidelity bank requires a compensating balance of 24 percent, discounts the loan, and wants to be paid back in four quarterly payments. southwest bank requires a compensating balance of 12 percent, does not discount the loan, but wants to be paid back in 12 monthly installments. the stated rate for both banks is 9 percent. compensating balances will be subtracted from the $157,000 in determining the available funds in part a. a-1. calculate the effective interest rate for fidelity bank and southwest bank. (do not round intermediate calculations. input your answers as a percent rounded to 2 decimal places.) a-2. which loan should summit accept? southwest bank fidelity bank b. recompute the effective cost of interest, assuming that summit ordinarily maintains $37,680 at each bank in deposits that will serve as compensating balances