40. The process of going to future value from present value is called: A. Discounting B. Amortizing C. Annuity C. Compounding D. Inflation

41. Assume that you manage a $10.00 million mutual fund that has a beta of 1.3. The market return is 9.00% and the risk-free rate is 3.0%. You now receive another $2.0 million, which you invest in stocks with an average beta of 1.4. What is the required rate of return for the new S12 million portfolios? A. 10.90% B. 11.88% C. 7.92% D. 14.88% E. 11.10%

43. A project requires an initial investment of $600. It produces cash flows of $300, $290, $280, and $270 in years 1, 2, 3, and 4. What is the project IRR? A. 31.48% B. 36.35% C. 26.61% D. 34.08% E. 32.45%