Rate of return earned over unspecified time period

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Reference no: EM132003340

1. An investor invests 40 percent of his wealth in a risky asset with an expected rate of return of 0.13 and a variance of 0.03; and 60 percent in a T-bill that pays 6 percent. What is his portfolio's expected return and standard deviation?

2. What is the current cost of debt for Gallagher Inc. that has a 9% coupon bond with 5 years to maturity and a current price of $962?

3. For the investment shown in the following table, calculate the rate of return earned over the unspecified time period.

Cash flow during period $950

Beginning-of- period value 12,300

End-of- period value $13,100

The rate of return on the investment is %___

Reference no: EM132003340

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