13a) You are the manager of a team of analysts working for a major bank. Your team approaches you with a potential project they think the bank should invest in. They present evidence to you that the proposed project has a beta of 1.1. The T-bill rate is 5% (risk-free rate) and the return on the market is 14%. What is the appropriate expected return on the new project? (Answer as a percentage and round to 2 decimals.)

Select one:

a. 14.90 %

b. 15.90 %

c. 13.30 %

d. 14.47 %

e. 16.47 %

13b) You are evaluating a couple of stocks to add to your investment portfolio. One of them Hooli Corp. has a stock beta of 0.18 and the other Pied Piper has a stock beta of 1.2. If you split up your portfolio and put 29% of your money in Hooli and 71 % in Pied Piper, what will the beta of your portfolio be? (Round to 2 decimals.)

Select one:

a. 2.12

b. 0.90

c. -0.36

d. 1.90

e. 0.00

13c) You are going to make a portfolio consisting of 80 % of Wizards of the Coast stock and 20 % of Lionsgate Stock. You also have the following information:

State i	Probability of State i	WOC Return	Lionsgate Return
Boom	60 %	17 %	16 %
Bust	40 %	1 %	3 %

What is the expected return for the portfolio? (Answer as a percentage and Round to 2 decimals)

Select one:

a. 12.95 %

b. 6.84 %

c. 14.56 %

d. 8.45 %

e. 10.64 %