16. If the Beta for Stock X equals zero, then according to the CAPM a, stock X's required return is equal to the risk-free rate of return. b. stock X has a guaranteed return. c. stock X's required return is equal to the required return on the market portfoli d. stock X's required return is equal to the stock's standard deviation. 17. A popular strategy for managing working capital is the hedging principle, whereby short-term assets are financed by short-term financing and long-term assets are financed by long-term financing. A manager following this principle should seek to the company's a. Minimize; cash conversion cycle b. Minimize; days of payables outstanding c. Maximize; days of sales outstanding d. Maximize; days of sales in inventory 18. Winnimar Inc. just paid a dividend of $6.95 on its common stock at the end of last year. You expect dividends per share next year will be $6.17 and $6.47 the year after that, You believe you can sell the stock in two years for S107.29. If your required rate of return on this stock is 1 8%, how much are you willing to pay for the stock today? a. $103.57 b. $95.03 c. $86.93 d. $77.13 is used as a measure of is used as a measure of total risk; 19. systematic risk. a. Beta; beta b. Standard deviation; standard deviation c. Beta; standard deviation d. Standard deviation; beta 5 of 11