1. In considering the main components of a construction budget, which costs would be expected to constitute the largest portion of a development project’s expense?
Land costs
Hard construction costs
Soft construction costs
Marketing costs
2. Consider two stocks, Stock D, with an expected return of 21 percent and a standard deviation of 37 percent, and Stock I, an international company, with an expected return of 7 percent and a standard deviation of 17 percent. The correlation between the two stocks is –.10. What is the weight of each stock in the minimum variance portfolio? (Do not round intermediate calculations. Round your answers to 4 decimal places.)
Weight of Stock D
Weight of Stock I