1.The stock of the Goldy Corporation has a beta of -0.25. If the expected return on the market decreases by 4%, then the expected return on Goldy should

Question 6 options:

increase by 1%

decrease by 1%

increase by 1.6%

decrease by 1.6%

2.You have analyzed four stocks and obtained the following results:

StockReturnStandardBeta

K22%35%2.8

I10%17%0.8

N8%15%0.2

G10%13%0.5

Refer to the information above. A risk-averse investor, who will be adding the stock to his already well-diversified portfolio, would choose to invest in Stock

3.Your firm uses 30% debt financing and 70% equity financing. The beta of the debt is 0.1 and the beta of the equity is 1.4. What is your firm's asset beta?