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CIAL MANAGEMENT) 20. Smartkids, a textbook publisher, is considering investing in a software company that collects and stores data. What beta should Smartkids use to

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CIAL MANAGEMENT) 20. Smartkids, a textbook publisher, is considering investing in a software company that collects and stores data. What beta should Smartkids use to assess the risk of the project? (4 Points) the beta for the textbook industry as a whole the beta for Smartkids the beta for software companies as a whole the beta for software companies that collect and store data 21. The slope of the security market line equals: (4 Points) the market risk premium one the expected return on the market portfolio beta 22. The stock of Mountain Sport is expected to produce the following returns given the various states of the economy:(-9% in a recession 17% in normal conditions and 25% in a boom) The probability of there being a recession is 20%, a normal economy is 75% and for a boom it is 5%. What is the expected return on this stock? (4 Points) 9.6 percent 105 percent 122 percent 13.6 percent ALL

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