Hello? i asked last week and ask again. just answer please

What is the beta of an asset with an expected return of 16%, if the riskfree rate of interest is 6% and the expected market portfolio risk premium is 6%? Accurate to two decimal places. 1.5 Cannot be calculated. 1.67 .75 2 0 The CAPM predicts that an asset with a beta of zero will offer a return equal to Rf. True False Given the information in the table below calculate the Beta of a portfolio that combines investments A, B, and C in the proportions given. Investment A B C Beta Weight 0.6 .3 1.2 .2 1.6 .5 Your answer should be accurate to two decimal places. As a general rule firms should accept all positive NPV projects as long as they diversify risk at the same time. True False The annual nominal rate is jm = 0.15pa. What is the effective annual rate as a percentage to two decimal places? The number of compounding periods is 11. Enter your answer as a decimal eg 17.42% = .1742 to four decimal places. Accuracy of one basis point. Tip: use excel to get the required accuracy. A security market line [SML]: is a graphical representation of the CAPM. is a graphical representation of the CML. gives the riskreturn relationship for efficient portfolios only explains the covariance between the returns on the risky asset and a riskless asset. explains the covariance between the returns on the risky asset and the market portfolio. Refer to the diagram above from PBEHP 12th Ed, page 231. Which of the following statements is correct. Note there may be more than one correct. Asset 2 is a better investment than Asset 1 A risk averse investor would invest only in the riskfree asset as it has no risk Aproject with a beta of 1.3 requires a return greater than 16.5% in order to add value If we combine asset 1 and asset 2 in equal proportions then the average beta would be one If Asset 2 has an IRR greater than15% then it should be accepted (according to the SML and the firm objective of maximising value.. All projects plotting on the SML have an NPV of zero The slope of the SML can be calculated by referring to any two points on the SML, for example the points representing Assets 1 and 2. Slope is equal to difference in return divided by difference in beta (.175 . 125)/(1.5 .05). Two assets with a beta of one should have the same covariance with the market. True False Portfolio A has a covariance with Portfolio B of .09 and a covariance with the market of .06 while the standard deviation of the market is 20%. What is the expected return on Portfolio A if the risk free rate is .04 (4%) and the expected return on the market is 12%? Do not enter the % sign. Give your answer as a percentage with accuracy to two decimal places, eg enter 11.00% as 11.00 Polycorp is considering a new project. The project has beta () that is twice that of the firm's existing assets (projects). Polycorp's existing assets have a required return (cost of capital) of 10%, the market risk premium is 7% and the risk free rate is 3%. Calculate the beta for the new project. Provide your answer accurate to two decimal places. Given the following on 5 independent projects: Accept/Reje Project IRR Beta RADR ct A 7.01% 0.2 B 11.90% 1 C 14.50% 1.2 D 11.00% 0.8 E 18.00% 2 Calculate the risk adjusted discount rate for each project and determine whether each project should be accepted or rejected. Rm = 12% and Rf = 5% Enter your answers for RADR as a percentage accurate to one decimal place and enter the % sign as well. eg 10.1 should be entered as 10.1% For the accept/ reject decision enter the word accept or reject in lowercase. Do not use commas. Do not use leading zeros. A well-diversified portfolio should have a beta significantly less than one. True False The discount rate that should be used to calculate the NPV of a project depends on the business risk of the project, not on the business risk of the firm. True False Polycorp's existing assets (projects) have a average beta of 1.2. The market risk premium is 7% and the risk free rate is 3%. What is the risk adjusted rate of return RADR required for these assets (the cost of capital of the existing assets)? provide your answer as a percentage but do not enter the % sign. An answer of 10.456% should be entered as 10.46. Refer to the diagram above from PBEHP 12th Ed, page 231. Which of the following statements is correct. Note there may be more than one correct. In equilibrium all financial assets will plot on the SML line and have an NPV of zero. The expected return on risky assets consists of two components: the riskfree return plus a premium for risk Negative NPV projects plot below the line and are considered to be underpriced All assets, securities and portfolios which plot on the SML are efficient. The riskfree asset has a beta of zero and the market portfolio has a beta of one The market risk premium in this example is 5% Positive NPV assets plot above the line and are considered to be underpriced