Your investment options are stocks of either Green Energy or…

Your investment options are stocks of either Green Energy or Oil Energy or a combination of those two. The following are possibilities of what may happen to these stocks depending on the political scenario. Possible Outcomes Probability Green’s StockReturns (%) Oil’s StockReturns (%) DEM 0.40 15 5 REP 0.50 5 15 IND 0.10 1 8   What is the standard deviation of returns of a portfolio with 50% investment in Green and 50% in Oil?

Capital Budgeting The Recycled Paper Inc. corporation is con…

Capital Budgeting The Recycled Paper Inc. corporation is considering a project with the following cash flows. Year Cash Flow 0 ($76,000) 1 $18,500 2 $18,500 3 $18,500 4 $18,500 5 $12,500 6 $12,500 7 $12,500 8 $12,500 Refer to the Capital Budgeting narrative. What is the IRR of the proposed project?