21.) For Figure 2, which of the following ranks the firms returns in order of responsiveness to the markets returns (highest to lowest)?

a. AT&T; T-Mobile; Verizon

b. T-Mobile ; AT&T ; Verizon

c. AT&T; Verizon; T-Mobile

d. Verizon ; T-Mobile; AT&T

22.) What is the portfolio beta for an equally weighted portfolio of the three firms shown in Figure 2?

a. 0.5370

b. 0.0059

c. 0.5312

d. 1.6111

23.) If the risk-free rate is 2% and the market risk premium is 10%, what is the portfolio return for an equally weighted portfolio of the three firms shown in Figure 2

a. 7.37%

b. 6.30%

c. 2.06%

d. 2.05%

r:_w