$$

1:33 . LTE 494 Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 2.7% rate of inflation in the future, (2) the real risk-free rate is 3.5%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 1.10, and (5) its realized rate of return has averaged 15.0% over the last 5 years. < a. 10.29% b. 10.83% C. 11.00% d. e. 11.20% 11.70% Porter Inc's stock has an expected return of 12.25%, a beta of 1.15, and is in equilibrium. If the risk-free rate is 5.00%, what is the market risk premium? a. 5.80% b. 5.95% C. 6.09% d. 6.30% e. 6.90% Which is the best measure of risk for a single asset held in isolation, and which is the best measure for an asset held in a diversified portfolio? a. Variance; correlation coefficient. b. Standard deviation; correlation coefficient. C. Beta; variance. d. Coefficient of variation%;B beta. e. Beta; beta. Which of the following statements is CORRECT? a. An investor can eliminate virtually all market risk if he or she holds a very large and well leet02-xythos.content.blackboardcdn.com - Private