C sbint with a lecte of a. ba a. 4ss. Treacury Eih 5. porthola with a betan 1.01 12. Toeal irk is miatured tir. and ipternatk rick it mit aruets by . A. betar atpha 8. betiey atandand deviation Galphar, beta D. standard dewation, peta. IF standard deviation, variance 13. What would you recommend 6 an investor whe in considering an lenestrint which, ocegrdinc \&o its beth. plots. below the security market line (sMA.)? A. Inweat, feturn is thigh relative so nitk. Don't invest return laloy relative to risk. ho gh C. Imvest stocks revert to the SAtL over time. Don't invest; stocks tevert to the SHt. over timet. 14.' The firm has 7,500 boinds outstandint with a tace walue of 51.000 per berid. The bonds camy 99 face value. The comporyli Rus rate is 34 perceat. What is the firmi a theretax cost of debo? A. 3.42 percent Bi. 4.84 pereent C. 6.18 percent D. 8.25 percent E. 9.65 percent 15. What is the cost of preferred stock that sells for 525 per yhare and olfers a 5 a dividerit? A. 106 8. 11% C. 127k 0. 13% E. 146