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4. If the beta for a stock decreases from 0.99 to 0.65 . The stock's ( 2 points) A risk has increased. 8. risk has

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4. If the beta for a stock decreases from 0.99 to 0.65 . The stock's ( 2 points) A risk has increased. 8. risk has decreased. c sales has increased. D. sales has decreased. E Not enough information to answer the question. 5. Suppose you purchase 16^ shares of Waymon Corp stock for $25.22 per share on June 1st. On December 27 of the same year, you sold 12 shares of the stock for $32.68 per share. A. Calculate the holding-period dollar gain for the shares you sold, assuming no dividend was distributed. (2 points) B. Calculate the holding-period rate of return. (2 points) 6. Simmons, Inc. is evaluating a security. Calculate the investment's expected return. ( 3 points) 7. Using CAPM, what is the required return for a stock with a beta of 1.3? The market returns 8%, and the risk-free rate is 2%. (3 points)

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