18.) Portfolio Analysis. Use the data in the previous problem and consider a portfolio with weights of .60 in stocks and .40 in bonds.

a.) What is the rate of return on the portfolio in each scenario?
b.) What is the expected rate of return and standard deviation of the portfolio?
c.) Would you prefer to invest in the portfolio, in stocks only, or in bonds only?
d.) Calculate the expected rate of return and standard deviation for each investment.

The DMT Company is financed entirely with equity. DMT has a beta of 1.20 and the current risk-free rate of 9.5%. If the expected market return (Km)is 14%, what rate of return should DMT require on a project of average risk? [ke=krf + (km-krf)(B)]
The following choices are one of the answers:
a. 14.9%
b. 15.4%
c. 14.0%
d.

Please see Problem below.
An investor has an investment that pays 8.5 percent before taxes and inflation. If the investor is in the 31 percent marginal tax bracket and the rate of inflation is 2.3 percent, what is the "real" or effective rate of return?
___a. 8.3045%
___b. 5.8650%
___c. 5.6695%
___d. 3.5650%
Ple

XYZ company has a beta of -1.
The risk-free (nominal) rate is 3% per year and that the required rate of return on the market is 10% per year.
Find the required rate of return.

I don't understand this problem at all.
Practice 18-16 Ranking by the Internal Rate of Return Method
The company is considering eight capital investment projects. The company has a minimum required internal rate of return of 13%. Screen and rank the eight capital investment projects using the internal rate of return.
P

Should this project be accepted based on its rate of return if the company requires a 14 percent return?
Year 0 1 2 3 4
CF -215900 91500 95700 -11200 118400
1. yes; the project's rate of return is 14.12 percent
2. yes; the project's rate of return is 17.57 percent
3. no; the project's rat

Solutions are provided for the problems given below.
1. Consider the following data for three alternatives A, B and C
Year A B C (A-B) (A-C) (C-B)
0 -3200 -1600 -2400 -1600 -800 -800
1 800 380 700

You are considering a security with the following possible rates of return:
Probability Return (%)
0.30 9.5
0.15 12.0
0.25 15.0
0.30 16.0
Calculate the expected rate of return and the standard deviation of the returns.
Probability Return (%)
0.15 6

Please help with the attached problem.
Thank you.
Stocks A and B have the following historical returns:
Year Stock A's Returns, Stock B's Returns
2001 -18.00% -14.50%
2002 33.00 21.80
2003 15.00 30.50
2004 0.50 (7.60)
2005 27.00 26.30
a. Calculate the average rate of r