45. Berg Inc. has just paid a dividend of $2.00. Its stock is now selling for share. The firm is half $48 per as risky as the market. The expected return on the market I, and the yield on U.S. Treasury bonds is 11 percent. If the market is in equilibrium, what rate of growth is expected? a, 13% b. 10% C. 4% d. 8% e. -2% 46. A young couple buys their dream house. After paying their down payment closing costs, the couple has borrowed $400,000 from the bank. The terms of the mortgage are 30 years of monthly payments at an APR of 6% with monthly compounding. What is the monthly payment for the couple? a. $2,398.20 b. $2,421.63 c. $2,697.98 d. $2,700.00 47. Which of the following statements about risk (as defined in finance) is false? a. Risk requires the possibility of at least one outcome less favorable than thee expected value b. Risk requires the possibility of more than one outcome. c. Risk is one of the determinants of the required returrn. d. Risk aversion generally is assumed in finance to be a characteristic of the "marginal investor." All of the above statements are true. e. 48 Last national bank offers a CD paying 7% interest (compounded annually). If you invest $1,000 how much will you have at the end of year 5 a. $712.99 b. $1,402.55 c. $1,350.00 d. $1,000 49. If the risk-free rate is 7 percent, the expected return on the market is 10 percent, and the expected return on Security J is 13 percent, what is the beta of Security J? a. 1.0 b. 1.5 C. 2.0 d. 2.5 e. 3.0