1- The parents of a newborn girl decide to place $10,000 in a bank today with the aim of forming a fund to finance her education.
a) If the interest rate earned on the deposit were 6% per year, compounded every 30 days, how much money will the girl have when she is 12 years old and starts high school? Assume a year of 365 days.
b) How much will she have in 17 years, when she starts college?

2- A company has financial surpluses for 60 days and you must determine the best of the following investment alternatives.
a) Fixed term of 40 days, with TNA interest of 10% with capitalization every 40 days.
b) For the first 30 days TNA interest of 10% with capitalization every 30 days. for the remaining 30, an effective rate of 2% for 45-day operations.
c) Purchase of public titles at $65 with 1% of purchase expenses. See estimated sale in 60 days at $70 with 0.5% cough expense.

3- Suppose that the risk-free rate is 5% and the expected return of the market portfolio is 15%. If a common stock has a Beta of 0.60, what is its expected return according to the CAPM? If another common stock has an expected return of 15%, what must its beta be?

4-The risk-free interest rate is 5% and the expected return of the market portfolio is 12%. Assuming that the CAPM hypotheses are met:
a) What is the market risk premium?
b) What is the required return on an investment with a Beta of 1.5?
c) If a stock has a Beta=1 and offers an expected return of 10%, is it overvalued?
d) Draw a graph showing how the expected return varies with Beta.

5- An American Treasury bond offers a yield of 5%. A common stock has a Beta of 0.70 and an expected return of 12%.

a) What is the expected return of a portfolio made up of equal investments in these two assets?

b) If a portfolio made up of these two assets has an expected return of 15%, what is its Beta?

c) If a portfolio made up of these two assets has a Beta of 1.20, what are the weighting factors? How is the weight factor for the risk-free asset interpreted?

 6- The Caracol company is contemplating the possibility of issuing shares to finance an expansion project. Caracol's financial analysts have determined that the project has the same risk as the market portfolio, since it has an expected return of 15% and the risk-free rate is 5%. The yield of the project is estimated at 20%. The project will go ahead unless:
a) The Beta of the company is greater than 1.5.
b) The Beta of the company is less than 1.5.
c) Whatever the Beta of the company, because what matters is the Beta of the project