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1) Ladders, Inc

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1) Ladders, Inc. has a net profit margin of 5.7% on sales of $48.1 million. It has book value of equity of $41.9 million and total book liabilities of $29.6 million. What is Ladders' ROE? ROA? Note: Assume the value of Interest Expense is equal to zero. What is Ladders' ROE? Ladders' ROE is %. (Round to two decimal places.) 

2) In December 2015, General Electric (GE) had a book value of equity of $98.2 billion, 9.4 billion shares outstanding, and a market price of $28.55 per share. GE also had cash of $100.6 billion, and total debt of $201.1 billion. a. What was GE's market capitalization? What was GE's market-to-book ratio? b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio? c. What was GE's enterprise value? a. What was GE's market capitalization? GE's market capitalization was $ billion. (Round to one decimal place.)

3)

Given two random variables x and y

State of Nature   Probability   variable x   variable y

I 0.2 18 0

II 0. 2 5 -3

III 0.2 12 15

IV 0.2 4 12

V 0.2 6 1

(i) Calculate the mean and variance of each of these variables and the covariance between them

(ii) Suppose x and y represent the returns from two assets. Calculate the mean and variance for the following part folios.

% in x 125 100 75 50 25 0 -25

% in y -25 0 25 50 75 100 125

(iii)Find the portfolio that has the minimum variance.

(iv)Let portfolio A have 75% in x and portfolio B has 25% in x. Calculate the covariance between the two portfolios.

(v) Calculate the covariance between the minimum variance portfolio and portfolio A.