10-12 answer only

If you hold a portfolio made up of the following stocks with the indicated amount of investment: Stock A Stock B Stock C Investment Value $2,000 $5,000 $3,000 Beta 1.5 1.2 0.8 What is the beta of the portfolio? a. b. c. d. e. Less than 0.8 because of diversification Equal to 1 because the portfolio is well-diversified Between 0.8 and 1.1 Greater than 1.1 Cannot be calculated without knowing the market risk premium and risk-free rate 11. Which of the following best describes free cash flow to equity? Free cash flow is the amount of cash flow available for distribution to shareholders after all necessary investments in capital have been made. Free cash flow is the net change in the cash account on the balance sheet. Free cash flow is equal to net income plus depreciation. Free cash flow is equal to net income plus depreciation plus dividends. a. b. c. d. 12. The price of a US Treasury note with a coupon of 2.5%, pays semi-annually, a maturity of 10 years, and a YTM of 2.00% is a. less than 99.25% of par b, greater than 99.25% but less than or equal to 101% of par c, greater than 101% but less than 104% of par d, greater than 104% of par e cannot be determined from the information