d. to provide improved capacity utilization and to gain new teenus FINANCE - FNAN 300 1. Generally, a corporation is owned by the A. Managers B. Stakeholders C. Stockholders D. Board of directors 2. The relationship between risk and return indicates that A. when risk decreases, return is unchanged B. when risk decreases, return increases C. when risk increases, return decreases D. when risk increases, return increases 3. What is the expected portfolio return given the following information? Asset Portfolio Return weight 0.85 20% B 0.15 359% A. 22.25% B. 20% C. 35% D. 27.5% 4. A project costs $300 and has cash flows of $50 for the first three years and S75 in each of the project's last three years. What is the payback period of the project? A. 3 years B. 3.75 years C. 4.50 years D. 5 years 5. Jet Corporation's stock has a beta of 1.27, the risk-free rate is 5%, and the expected return on the market is 13%. What is Jet's cost of equity capital? A. 15.16% B. 16.51%% C. 22.96% 2. 14.17%