1. Consider the following annual returns for Vanguard 500 Index Fund Investor Shares (VFINX)

2005	2006	2007	2008
10%	-10%	15%	-15%

Calculate the arithmetic average annual return over this period.

2. The Sisyphean Company is considering a new project that will have an annual depreciation expense of $6 million. If Sisyphean's marginal corporate tax rate is 35%, then what is the value of the depreciation tax shield on the company's new project?

3. A portfolio comprises Delta Air Lines (beta of 1.6) and Amazon (beta of 0.6). You invested 65% of your funds in Delta Air Lines and 35% of your funds in Amazon . What is the beta of the portfolio?