Profit center operating budget may be expected

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Reference no: EM131977608

1. A profit center operating budget may be expected to show:

A. operating costs only.

B. operating costs and revenues.

C. operating costs and capital expenditures.

D. None of these is correct.

2. Suppose that you have $1 million and the following two opportunities from which to construct a portfolio:

a. Risk-free asset earning 11% per year.

b. Risky asset with expected return of 26% per year and standard deviation of 34%.

If you construct a portfolio with a standard deviation of 24%, what is its expected rate of return?

Reference no: EM131977608

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