1. You are holding a stock that has a beta of 1.64 and is currently in equilibrium. The required return on the stock is 16.30% and the return on a risk-free asset is 4.0%. What would be the return on the stock if the stock's beta increased to 2.25 while the risk-free rate and market return remained unchanged?

	26.09%
	29.88%
	16.30%
	20.88%
	18.23%

2. What is the expected return for the following portfolio? (State your answer in percent with two decimal places.) Stock Expected returns Investment AAA 37% $400,000 BBB 28% $1,100,000 CCC 21% $1,500,000 DDD 6% $1,400,000

	17.16%
	19.43%
	21.04%
	22.25%
	23.92%

3. If the risk-free rate is 6.0%, the market risk premium is 13.0%, and the expected return on Security J is 21.6%, what is the beta for Security J?

	1.20
	2.23
	2.72
	1.07
	1.65