14. Historically, stocks have delivered a return on average compared to Treasury bills but have experienced fluctuations in values. A. Lower, lower B. Higher, higher C. Higher, lower D. Lower, higher 15. The market value of Fords' equity, preferred stock, and debt are $8 billion, $1 billion, and $15 billion, respectively. Ford has a beta of 1.3, the market risk premium is 7%, and the risk-free rate of interest is 4%. Ford's preferred stock pays a dividend of $3 each year and trades at a price of $26 per share. Ford's debt trades with a yield to maturity of 8%. What is Ford's weighted average cost of capital if its tax rate is 35% ? A. 8.1% B. 8.5% C. 9.72% D. 8.91% 16. You expect General Motors (GM) to have a beta of 1.3 over the next year and the beta of Exxon Mobil (XOM) to be 0.9 over the next year. Also, you expect the volatility of GM to be 40% and that of XOM to be 30% over the next year. Which stock has more systematic risk? Which stock has more total risk? A. XOM, GM B. GM, GM C. XOM, XOM D. GM, XOM 17. Amazon.com stock prices gave a realized return of 25%,10%,10%, and 12% over four successive quarters. What is the annual realized return for Amazon.com for the year? A. 69.4% B. 62.46% C. 76.34% D. 55.52% 18. XYZ Company has realized annual return of 10%,25%,15%, and 20% from 20182021. What is the standard deviation of annual returns for the company? A. 25.46% B. 19.09% C. 23.33% D. 21.21% 19. Based on these numbers listed above (in Question 18), what is a 95\% confidence interval for XYZ Company's 2022 returns? A. 51%,51% B. 42%,42% C. 12%,18% D. 25%,35%