Stock a has an expected return of 10% and a standard deviation of 20%. stock b has an expected return of 13% and a standard deviation of 30%. the risk-free rate is 5% and the market risk premium, rm- rrf, is 6%. assume that the market is in equilibrium. portfolio ab has 50% invested in stock a and 50% invested in stock b. the returns of stock a and stock b are independent of one another, i. e., the correlation coefficient between them is zero. which of the following statements is correct? a. portfolio ab's required return is 11%. b. portfolio ab's standard deviation is 25%. c. stock a's beta is 0.8333. d. stock b's beta is 1.. e. since the two stocks have zero correlation, portfolio ab is riskless.

Orange corporation issued 20-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000 one year ago. today, the market interest rate on these bonds is 5.5%. what is the current price of the bonds, given that they now have 19 years to maturity?

Alarge tank is filled to capacity with 500 gallons of pure water. brine containing 2 pounds of salt per gallon is pumped into the tank at a rate of 5 gal/min. the well-mixed solution is pumped out at the same rate. find the number a(t) of pounds of salt in the tank at time t.

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale. required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse. b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this. c. explain the difference between sale of receivables with recourse as oppose to without recourse.