1. If the risk-free rate is 6.0%, the expected return on the market is 10.0%, and the expected return on Security J is 15.6%, what is the beta for Security J?

	2.94
	0.96
	2.41
	0.86
	1.78

2. What is the expected return for the following stock? (State your answer in percent with one decimal place.) Outcomes Possible returns Probability better 36% 14% same 20% 32% worse 17% 54%

	18.21%
	20.62%
	22.33%
	23.61%
	25.38%

3. You are holding a stock that has a beta of 1.85 and is currently in equilibrium. The required return on the stock is 28.95%, and the return on the market portfolio is 18.00%. What would be the new required return on the stock if the return on the market increased to 25.00% while the risk-free rate and beta remained unchanged?

	34.40%
	51.37%
	28.95%
	47.38%
	41.90%