9) If the net present value of a project that costs $20,000 is $5,000 when the discount rate is 10%, then the: A) project's rate of return is greater than 10%. B) project's IRR equals 10%. C) project's cash inflows total $25,000. D) net present value of the cash inflows is $4,500. 10) A portfolio is comprised of 60% of Stock A and 40% of Stock B. Probability Return on Stock B Normal Boom 809 5% 14% 28% What is the expected return of the portfolio? A)91% B) 6.4% C) 7.7% D) 8.3% 11) The wider the dispersion of returns on a stock, the: A) lower the real rate of return. C) lower the expected rate of return. B) higher the standard deviation. D) lower the variance. 12) The required return on an equity security is comprised of a: A) dividend yield and ROE. B) dividend yield and a capital gains yield. C) sustainable growth rate and a plowback yield. D) current yield and a terminal value. 13) What should be the stock value one year from today for a stock that currently sells for $35, has a required return of 15%, an expected dividend of $2.80, and a constant dividend growth rate of 7%? A) $40.25 B) $37.80 C) $37.45 D) $43.05 14) What is the beta of a U.S. Treasury bill? A) Unknown ) 1,0 15) One common reason for reporting standard deviations rather than variances is that standard deviations: A) are stated in understandable units. B) take probability estimates into consideration. C) account properly for negative returns. D) are lower