1. What is the after tax cost of debt on a $500,000 loan given a 5% interest rate and 35% tax bracket?"
"$16,250 "
3.25%
1.75%
"$25,000 "
2. You own a portfolio that has 70% invested in asset A, and 30% invested in asset B. Asset A s standard deviation is 12% and asset B s standard deviation is 20%. The correlation coefficient between the two assets is -0.8. The expected return on the portfolio is 15%. The standard deviation for this portfolio is closest to:
0.26%
4.00%
4.36%
5.09%
0.29%