Using the table, plot the opportunity set of risky assets in Excel. Then vary the correlation between stocks and bonds from + 1 to -1 and describe the changes in shape of the efficient frontier as you do so.
Upload the Excel file that contains the table & graph.
Also include in Excel file a description of the efficient frontier's shape as you vary the correlation. A B C D E 1 Return Risk Sharpe Ratio Stock Allocation 0% 2. 3 Bond Allocation 100% 95% 90% 5% 4 10% 5 6 7 15% 20% 85% 80% 25% 8 9 30% 35% 75% 70% 65% 60% 10 11 12 40% 45% 50% 55% 50% 45% 40% 13 14 35% 15 16 17 55% 60% 65% 70% 75% 80% 30% 25% 18 19 85% 20% 15% 10% 5% 20 90% 21 95% 100% 0% 22 23 24 25 26 27 28 29 30 31 32 33Using the graph of the opportunity set of risky assets, answer the following:a) Change the correlation of stocks and bonds back to 0.25 and observe the shape of the efficient frontier. b) Starting at the point that corresponds to 100% Bonds & 0% Stocks, describe what happens to portfolio risk and return as you increase the stock allocation and decrease the bond allocation? Why is this happening?c) Now change the correlation between stocks & bonds to -1. What is the lowest risk achievable?

Granby foods' (gf) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. the yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. the company has 10 million shares of stock, and the stock has a book value per share of $5.00. the current stock price is $20.00 per share, and stockholders' required rate of return, r s, is 12.25%. the company recently decided that its target capital structure should have 35% debt, with the balance being common equity. the tax rate is 40%. calculate waccs based on book, market, and target capital structures. what is the sum of these three waccs?

Blue computers, a major pc manufacturer in the united states, currently has plants in kentucky and pennsylvania. the kentucky plant has a capacity of 1 million units a year and the pennsylvania plant has a capacity of 1.5 million units a year. the firm divides the united states into five markets: northeast, southeast, midwest, south, and west. each pc sells for $1,000. the firm anticipates a 50 perc~nt growth in demand (in each region) this year (after which demand will stabilize) and wants to build a plant with a capacity of 1.5 million units per year to accommodate the growth. potential sites being considered are in north carolina and california. currently the firm pays federal, state, and local taxes on the income from each plant. federal taxes are 20 percent of income, and all state and local taxes are 7 percent of income in each state. north carolina has offered to reduce taxes for the next 10 years from 7 percent to 2 percent. blue computers would like to take the tax break into consideration when planning its network. consider income over the next 10 years in your analysis. assume that all costs remain unchanged over the 10 years. use a discount factor of 0.1 for your analysis. annual fixed costs, production and shipping costs per unit, and current regional demand (before the 50 percent growth) are shown in table 5-13. (a) if blue computers sets an objective of minimizing total fixed and variable costs, where should they build the new plant? how should the network be structured? (b) if blue computers sets an objective of maximizing after-tax profits, where should they build the new plant? how should the network be structured? variable production and shipping cost ($/unit) annual fixed cost northeast southeast midwest south west (million$) kentucky 185 180 175 175 200 150 pennsylvania 170 190 180 200 220 200 n. carolina 180 180 185 185 215 150 california 220 220 195 195 175 150 demand ('000 units/month) 700 400 400 300 600

Abond purchased for $950 was sold for $980 after one year. the interest received during the year is $25. the bond's yield is: