Of the following 4 portfolios, choose the one that is most diversified. A B C Comcast Comcast Comcast Amazon Starbucks Amazon Toyota Pfizer (pharmaceuticals) Тoyota Exxon Mobil Apple Sony Pfizer (pharmaceuticals) Pfizer (pharmaceuticals) Disney Pfizer (pharmaceuticals) А C

1. Which of the following stocks belongs to the Consumer Staples stock sector? • Walmart Inc. • 3M Co. • Chevron Corp. • Amazon.com • Pfizer Inc. 2. Which of the following stocks belongs to the Health Care stock sector? • Merk & Co. Inc. • Equinix Inc. • Apple Inc. • Boeing Co. • Dow Inc.

Sector Basic Materials Consumer Cyclicals Financials Real Estate Communication Servic FAKEX Weight Energy Industrials Technology Consumer Defensive Healthcare Utilities 5.81% 13.45% 21.89% 6.98% 1.32% Russell 2000 Portfolio Sector Russell 2000 Return Return Index Return Index 4.32% 11.82% 7.84% 7.84% 4.63% 9.98% 9.48% 11.71% 32.36% 8.91% 4.29% 10.42% 2.33% 1.20% 7.84% 0.67% -27.89% -24.51% 5.87% -12.43% -16.44% 12.67% 14.32% 17.00% 10.35% 16.34% 10.74% 2.81% 5.63% -0.91% 4.27% 10.43% 26.63% 5.97% 7.35% 13.85% 6.43% 17.43% 4.53% 11.78% 6.15% 4.23% 100.00% Consider the Interaction Effect using only the Technology Sector in the data presented above. Which statement below are true? (Select all that apply) 7.84% 7.84% 7.84% 7.84% 7.84% 7.84% 7.84% 7.84% The Interaction Effect for the Technology Sector was negative ✔ The Interaction Effect for the Technology Sector was positive O Under-weighting the Technology Sector was a good idea since the Sector was beaten by many other sectors…

Solve with excel formulas, please!

If you were to choose from the following combinations of stocks to form a portfolio, which portfolio is the best for the benefit of diversification? Delta Airline and Target Coke and Pepsi Target and Walmart Duke Energy (just one) Delta Airline and American Airline

Which of the following is not true?                                   Firm A                                      Firm B                          Industry Benchmark   2018 2019 2020 2018 2019 2020 2018 2019 2020 ROA 9.14% 9.50% 9.90% 8.11% 8.16% 8.19% 8.11% 8.14% 8.15% ROE 22.45% 22.95% 23.45% 19.65% 19.88% 20.12% 19.95% 20.55% 21.00% TIE 1.75 1.65 1.55 2.75 2.90 3.05 2.25 2.30 2.50 CR 3.25 3.66 3.75 2.55 2.65 2.75 2.40 1.45 2.50 EPS 1.90 2.10 2.25 1.55 1.65 1.75 1.52 1.55 1.60   A Based on ROA, Firm A is doing better than Firm B and the Industry benchmark.    B Based on  Times Interest Earned, Firm A is doing better than Firm B and the Industry benchmark.           C Based on ROE, Firm A is doing better than Firm B and the Industry benchmark.    D Based on current ratio, Firm B is doing better than the Industry benchmark.

A Beta 1.10 Market Capitalization = 122.548B Book Value of Debt = 93.21B Bond Price = 103.10 Interest Rate = 2.75% Maturity = 20 years Therefore - PV = -1,031.00; FV = 1,000; PMT = 27.50; N = 20; CPT I = 2.55% Tax rate 21% Current One Year Treasury Bill Rate (Risk-free Rate) = 5% Market Return: Estimated at 8% Step 1 Calculate the WACC for Deere and Company (DE) given: Step 2 Step 3 Step 4 Search What are the weightings for Equity and Debt? What is the Cost of Equity? What is the After-Tax Cost of Debt? What is the WACC?