17. Suppose you held a diversified portfolio consisting of 10 different common stocks, investing $500 in each stock. The portfolios beta is 1.5. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 0.8 for $500 and use the proceeds to buy another stock with a beta of 1.25. What would your portfolios new beta be? *

a) 1.074

b) 2.025

c) 3.865

d) 4.2

e) None of the above

18. If you would like to accumulate $7,500 over the next 5 years, how much must you deposit each six months, starting six months from now, given a 6% interest rate and semiannual compounding? *

a. $1,330.47

b. $879.23

c. $654.23

d. $569.00

e. None of the above

19. You deposited $5000 into an account at an annual interest of 8% compounded semiannually. What is the future value of this $5,000 after 4 years? *

a) $8,112

b) $7,112

c) $1,250

d) $6,843

e) None of the above

20. Whats the future value of $7,500 after 10 years if the appropriate interest rate is 8%, compounded annually? *

a) $12,620

b) $50,016

c) $16,192

d) $1,500

e) None of the above

21. Whats the present value of $25,000 received after 5 years if the appropriate interest rate is 10%, compounded annually? *

a) $13,620

b) $19,690

c) $1,670

d) $15,523

e) None of the above

22. Whats the future value of $50,000 after 3 years if the appropriate interest rate is 10%, compounded annually? *

a) $66,550

b) $72,835

c) $41,111

d) $1,888

e) None of the above