Penny francis inherited a $200,000 portfolio of investments from her grandparents when she turned 21 years of age. the portfolio is comprised of treasury bills and stock in ford (f) and harley davidson (hog): a. based on the current portfolio composition and the expected rates of return, what is the expected rate of return for penny's portfolio? b. if penny wants to increase her expected portfolio rate of return, she can increase the allocated weight of the portfolio she has invested in stock (ford and harley davidson) and decrease her holdings of treasury bills. if penny moves all her money out of treasury bills and splits it evenly between the two stocks, what will be her expected rate of return? c. if penny does move money out of treasury bills and into the two stocks, she will reap a higher expected portfolio return, so why would anyone want to hold treasury bills in their portfolio?

This problem has been solved! see the answercompute and interpret altman's z-scoresfollowing is selected financial information for ebay, for its fiscal years 2005 and 2006.(in millions, except per share data) 2006 2005current assets $ 4,970.59 $ 3,183.24current liabilities 2,518.39 1,484.93total assets 13,494.01 11,788.99total liabilities 2,589.38 1,741.00shares outstanding 1,368.51 1,404.18retained earnings 4,538.35 2,819.64stock price per share 30.07 43.22sales 5,969.74 4,552.40earnings before interest and taxes 1,439.77 1,445.18compute and interpret altman z-scores for the company for both years. (do not round until your final answer; then round your answers to two decimal places.)2006 z-score = answer2005 z-score = answerwhich of the following best describes the company's likelihood to go bankrupt given the z-score in 2006 compared to 2007.the z-score in 2006 is half of the 2005 score. both z-scores are well above the score that represents a healthy company.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly increased the risk of bankruptcy.the z-score in 2006 is half of the 2005 score. the z-score has decreased sharply, which suggests the company is in financial distress.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly lowered the risk of bankruptcy.