What is the fixed-cost expenditure for firm

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1. What real rate of return is earned by a one-year investor in a bond that was purchased for $1,000, has a coupon rate of 8%, and was sold for $960 when the inflation rate was 2%?

2. What is the fixed-cost expenditure for a firm with a DOL of 4.5 that generates pretax profits of $1 million and has $600,000 in depreciation expense?

3. Find standard deviation of returns of a 3-stock portfolio (each stock being equally weighted) that produced returns of 20%, 25%, and 30%.

Reference no: EM131929501

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