1. An investor invests 40 percent of his wealth in a risky asset with an expected rate of return of 0.13 and a variance of 0.03; and 60 percent in a T-bill that pays 6 percent. What is his portfolio's expected return and standard deviation?
2. What is the current cost of debt for Gallagher Inc. that has a 9% coupon bond with 5 years to maturity and a current price of $962?
3. For the investment shown in the following table, calculate the rate of return earned over the unspecified time period.
Cash flow during period $950
Beginning-of- period value 12,300
End-of- period value $13,100
The rate of return on the investment is %___