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An investment project has the following cash flows: CFO = -1, 200,000; C01 - C05 = 300,000 each if the required rate of return is

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An investment project has the following cash flows: CFO = -1, 200,000; C01 - C05 = 300,000 each if the required rate of return is 12%, calculate IRR = (). a. 5 b. 6 c. 7.9 d. 8.7 e. 9.5 f. 10.5 g. 11.8 h. 12 i. 14.6 j. 16 % 13. Following No. 12, please calculate PI pf the project. a. 0.51 b. 0.88 c. 0.90 d. 0.99 e. 1.05 f. 1.07 g. 1.11 14. Following No. 12, payback period of this project is a. 1 b. 2 c. 3 d. 4 e. 5 f. 6 g. 7 h. 8 i. 9 j 10 years 15. Following No. 12, should the project be a. accepted b. rejected c. it cannot be decided. 16. You bought a stock for $34, and you received dividends of $0. 14. The stock is now selling for $41. What is your percentage return? a. 7% b. 8% c. 11% d. 15% e. 19% f.21% g. 28% f. 30% g. 31% 17. Consider the following information on returns and probabilities: Invest 1/2 of your money in Asset A and 1/2 in Asset B. What is the expected return for the portfolio? a. 1.7 b. 2.9 c. 3.9 d. 4.6 e. 5.5 f. 6.9 g. 7.5 h. 9.0 i. 8.2 j. 11 18. Following No. 17, what is the standard deviation of the return on the portfolio? a. 0.58 b. 1.73 c. 2.6 d. 3.6 e. 5.9 f. 6.9 g. 7.6 h. 8.5 i. 9.6 j. 10.17 % 19. Consider an asset with a beta of 1.4, a risk-free rate of 0.4%, and a market return of 4.4%. What is the reward to risk ratio? a. 4 b. 6 c. 7 d. 8 e. 9 f. 10 g. 11 h. 12 i. 14 j. 16 % 20. Following No. 19, what is the expected return on the asset? a. 5 b. 6 c. 7 d. 8 e. 9 f. 10.5 g. 11.4 h. 12 i. 14.6 j. 16 %

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