40.Cheng Inc. is considering a capital budgeting project that has an expected return of 25% and a standard deviation of 30%, what is the project's coefficient of variation? a. 1.20 b. 5.00 C. 0.83 d. 1.39 e. Not enough information provided to compute. 41. Bill Dukes has $100,000 invested in a 2-stock portfolio. $35,000 is invested in Stock x and the remainder is invested in stock . X's beta is 1.50 and r's beta is 0.70. What is the portfolio's bea? a. 0.65 b. 0.72 c. 0.80 d. 0.89 e. 0.98 42. Tom o'Brien has a 3-stock portfolio with a total value of $100,000 is invested in Stock A with a beta of 0.70, $50,000 is invested in stoek B with a beta of 1.40 and the remainder is invested in Stock C with a beta of 2.0. What is his portfolio's beta? b. 1.23 c. 1.29 d. 1.44 e. 1.42 43. Assume that you hold a wel1-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 13 . 0% and a beta of 1.50. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock? a. 10.648; 1.17 b. 11.208: 1.23 c. 11.76a; 1.29 d. 12.35%; 1.36 e. 12.978; 1.42 44. Calculate the required rate of return for Martin Enterprises given a market risk premium of 12% and the risk free rate is 3.0% and the HE's beta is 1.40