A car dealership analyzing whether it will loan money to William to buy a new car finds that his credit score is in the "very good” range. Which statement best describes the lender’s viewpoint of William?

He is a low-risk borrower who qualifies for lower interest rates.
He is a low-risk borrower who will struggle to obtain a loan.
He is a high-risk borrower who will get multiple loan offers.
He is a high-risk borrower who qualifies for higher interest rates.

The total value of your portfolio is $10,000: $3,000 of it is invested in stock a and the remainder invested in stock b. stock a has a beta of 0.8; stock b has a beta of 1.2. the risk premium on the market portfolio is 8%; the risk-free rate is 2%. additional information on stocks a and b is provided below. return in each state state probability of state stock a stock b excellent 15% 15% 5% normal 50% 9% 7% poor 35% -15% 10% what are each stock’s expected return and the standard deviation? what are the expected return and the standard deviation of your portfolio? what is the beta of your portfolio? using capm, what is the expected return on the portfolio? given your answer above, would you buy, sell, or hold the portfolio?

Coop inc. owns 40% of chicken inc., both coop and chicken are corporations. chicken pays coop a dividend of $10,000 in the current year. chicken also reports financial accounting earnings of $20,000 for that year. assume coop follows the general rule of accounting for investment in chicken. what is the amount and nature of the book-tax difference to coop associated with the dividend distribution (ignoring the dividends received deduction)?

Afamily wishes to save for future college expenses. which financial tool should the family invest in?