15. Your entire portfolio consists of McDonalds stock and Apple stock. The expected return of McDonalds stock is 4.5% and Apple stock is 8.2%. If the expected return of your portfolio is 7.5%, what percent of your portfolio is invested with Apple? a)21% b) 19% c) 61% d) 81% e)91% 16. You are considering investing $50,000 today to develop a new marketing campaign. In one year, if the economy is booming, you expect this campaign to result in $100,000 of additional cash flow. If the economy is average, $60,000 additional cash flow is expected. But if we are in a recession, no one will buy your product and the marketing will have no incremental effect on cash flow. The three economic states are equally likely. What is the NPV of this campaign if the required rate of return is 12%? a) -S2,381 b) -$336 c) S336 d) $4,225 e) S9,500 17. You borrowed $10,000 to buy a new car. The loan was a 6-year loan at 6%. The monthly payment was $165.73 and in the first 36 months you paid $1,413.91 in interest. After 3 years you decide to take a 4-year used car loan at 2.5%. How much will your monthly payment go down? a. $109.38 b. S66.35 c. $73.22 d. S36.75 e. $46.35