1. In 2014, Cummins had a fixed asset turnover of about 5.2. This suggests that if the company invested another $10 million in fixed assets, the change in revenue, ceteris paribus (Links to an external site.)Links to an external site., should be about...
a) $52 million
b) $15.2 million
c) $1.923 million
2. A portfolio contains 208 shares of Stock A that sell for $26 each, 325 shares of Stock B that sell for $53 each and 55 shares of Stock C that sell for $42 each. What is the portfolio expected return if the expected returns on these stocks is 13.7%, 6.5%, and 7.9% respectively?