You are looking to invest in the US capital market. There are 3 assets you are considering building your portfolio out of: VTI (risky corporate stocks), VCIT (risky corporate debt), and 3-month T-bills of the US government. VTI has an annual expected return of 8%, and a volatility of 15%. VCIT has an annual expected return of 3.5%, and a volatility of 5%. The covariance between VTI and VCIT is 0.002. The T-bills of the US government have an expected return of 2.5%, and have no volatility. What is the expected return of a risky portfolio made of 30% VTI, and 70% VCIT? What is the Volatility of the portfolio? What is the Sharpe ratio of the portfolio? Which is closer to the optimal risky portfolio: A portfolio with the initial 30/70 weighting, or a 50/50 weighting? Please show all work. You will not recieve credit for a single correct answer with no work, but partial credit will be given even if your answer is completely wrong as long as I can understand your work.

Why might a business based on a fad be a good idea? question 2 options: fads bring in the most customers. some fads are longer lasting than expected. fads have made some business owners incredibly wealthy. fads can take a business in a new direction.

When selecting a savings account, you should look at the following factors except annual percentage yield (apy) fees minimum balance interest thresholds taxes paid on the interest variable interest rates

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g