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Harken Inc. stock has an expected retum equal to the risk-freerate. Assuming that the stock is priced correctly according to CAPM and assuming a positive

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Harken Inc. stock has an expected retum equal to the risk-freerate. Assuming that the stock is priced correctly according to CAPM and assuming a positive market risk premium what do you know about Harken's beta? Beta must be positive Beta must be zero Beta must be negative RokOn has a beta of 0.7. If the return on the market is 14% and the return on treasury bills is 5.5%, what is RokOn's expected return and risk premium? expected return 5.95%: risk premium 11.45% expected return 0.45X risk premium 5.95% expected return 11.45%; risk premium 5.95% expected return 9.20% risk premium 14.7% JamBanz is looking to launch a next edition of its hit video game, Rock Tour 6. RockTour 6 will cost $11 million to develop and produce new cash flows of $4.5 million for the next three years. The release of RockTour 6 is also expected to cannibalize sales of the prior version of the game, RockTour 5. JamBanz expects cash flows for RockTour 5 to decline by $2.5 million for the next two years. If JamBank's cost of capital is 8.2%, should it go ahead with the launch of RockTour 6? No, destroys $1.94 mil No destroys $3.89 mil Indifferent creates $0.00 mil Yes, creates $0.56 mil Yolkin Inc has 100% equity financing and no debt. Its current risk premium is 10%. Yolkin estimates that a new Investment will return 128%. At what range of risk-free rates should Yolkin accept the project? Accept frisk free rate 10% Accept if risk-free rate 2.8% Accept if risk-free rate > 10% Accept ifriske free rate

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