The standard deviation for this portfolio is closest to

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1. What is the after tax cost of debt on a $500,000 loan given a 5% interest rate and 35% tax bracket?"

"$16,250 "

3.25%

1.75%

"$25,000 "

2. You own a portfolio that has 70% invested in asset A, and 30% invested in asset B. Asset A s standard deviation is 12% and asset B s standard deviation is 20%. The correlation coefficient between the two assets is -0.8. The expected return on the portfolio is 15%. The standard deviation for this portfolio is closest to:

0.26%

4.00%

4.36%

5.09%

0.29%

Reference no: EM131569529

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