QUESTION 11
Consider a portfolio with $2,958 invested in Asset A and $4,877 invested in Asset B with the following return and risk of the rate of return on the portfolio. What does the portfolio pay when a TIE occurs? (Round to the nearest whole percentage)
State Probability Asset A Asset B
WIN 0.7 10% 32%
TIE 0.2 7% 6%
LOSS 0.1 -6% -5%
QUESTION 12
Sofia Corp had sales of $186,705 in 2019. The total operating costs were $60,815. Interest expense was $2,024 and depreciation was $27,448. The firm's tax rate is 29%. What is the firm's earnings before interest and taxes?
A) $98,442
B) $125,890
C) None of the other available choices
D) $68,457
E) $159,257
F) $513,843