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$576,500 5 points QUESTION 7 1. The risk-free rate of interest is 4% and the market risk premium is 8%. FC Corporation has a beta

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$576,500 5 points QUESTION 7 1. The risk-free rate of interest is 4% and the market risk premium is 8%. FC Corporation has a beta of 1.8, and last year generated a return of 15% with a standard deviation of retums of 21%. The required return on FC Corporation stock is QU 1. Bree gen Bres 19.6% 12 2 C: till 16.4% 23.5% 18.4% - 5 points QU 1. As the QUESTIONS 1. The US dollar increased dramatically in value against the Euro in 2014-15. The result has been that c - European exports to the United States are less competitive. U.S.goods cost less in Europe. US exports are less competitive in Europe QUE 1. Short frequ U.S. travelers are finding it more expensive to travel in Europe. 6 points C

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