65. Assume the historical return for ABC Company is 11.5% and its beta is .5. Further assume that the risk-free rate of return is 3% and the standard deviation is 30%. Based on these factors (using the Capital Asset Pricing Model) calculate the cost of equity. A. 8.5% B. 4.25% C. 6.25% D. 7.30%

I need the excel formula for this. The answer should be 4.25.

I'm seeing different answers for these ones. Your input would be helpful.

46. Over the last 100 years, dividend yields have continually declined. What might be a reason for the decline?

A. The intervention by the US Govt in setting interest rates

B. The general decline of stock prices

C. The general increase in stock prices

D. Dividend yields have not been adjusted for inflation

47. The two terms most often used when attempting to measure volatility and risk are:

A. Beta and the Sharpe ratio

B. Beta and Gamma

C. Standard Deviation and Beta

D. Dividend Yields and Earnings per Share