1. Using the Dupont identity, what is the firm's ROE if profit margin is 10%, total assets turnover is 1.5, and the equity multiplier is 3: a) 5% b) 45% c) 15% d) None of the above 2. What is the return on a portfolio which comprises stock A (40%) and stock B (60%) knowing that returns on stock A and B are 10% and 20%, respectively? a) 15% b) 16% c) 14% d) None of the above 3. Which of the following investment appraisal methods does not take into account the time value of money: a) IRR b) NPV c) None of the above. d) Payback period