1. You are looking for a stock with 2 times the risk and reward characteristics of the overall stock market. You need to find a stock that:

has a Standard Deviation of .25

has a Beta of .25

has a Standard Deviation of 2.5

has a negative Beta

has a Beta of 2.5

2. Williamston Widgets has one fixed asset, which it purchased 5 years ago for $5,000,000. It has taken a total of $2,000,000 in Depreciation charges on that asset, and the company has determined that it could be sold today for $2,500,000. The companys balance sheet shows a total of $2,000,000 in Current Liabilities, and the company has $500,000 in Net Working Capital. If all of the companys Current Assets were liquidated today, the company would receive $1,000,000. What is the Book Value of the companys Total Assets?

3. A project has an initial cash outflow of $65,000, total cash flow in Year 1 of $22,000, with total cash flows increasing by 5% in Year 2, and by 5% in Year 3? Assuming a discount rate of 10%, what is the projects Net Present Value?