QUESTION 11
Consider a portfolio with $2,958 invested in Asset A and $4,877 invested in Asset B with the following returns and probabiles. What be
the rate of return on the portfolio pay when a TIE occurs? (round the the nearest whole percentage //%)
Asset A Asset B
State Probability
WIN
0.7
10%
32%
TIE
0.2
7%
6%
LOSS
0.1
-9%
-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 v
$27,448. The firm's tax rate is 29%. What is the firm's earnings before interest and taxes?
$98,442
$125,890
None of the other available choices
$68,457
$159,257
$13,843
QUESTION 13
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