MCQ: please provide working details

Q1. Suppose the market portfolio has an expected return of 10% and a volatility of 20%, a) b) c) d) while Microsoft's stock has a volatility of 30%. What is Microsoft's equity cost of capital? Higher than 10% Lower than 10% Exactly 10% Cannot be determined from the question Q2. a) b) c) d) A call option value increases as Exercise Price Dividends Volatility None of the above ncreases: Q3. Which of the following statements is FALSE? a) A stock option gives the holder the option to buy or sell a share of stock on or b) A call option gives the owner the right to buy the asset. before a given date for a given price c) A financial option contract gives the writer the right (but not the obligation) to d) A put option gives the owner the right to sell the asset. Q4. Wyatt Oil has assets with a market value of $600 million, $70 million of which are purchase or sell an asset at a fixed price at some future date cash. It has debt of $250 million, and 20 million shares outstanding. Assume perfect capital markets. If Wyatt Oil distributes the $70 million as a share repurchase, then its stock price after the share repurchase will be closest to a) 11.00 b) $12.50 c) $14.00 d) $17.50 Q1. Suppose the market portfolio has an expected return of 10% and a volatility of 20%, a) b) c) d) while Microsoft's stock has a volatility of 30%. What is Microsoft's equity cost of capital? Higher than 10% Lower than 10% Exactly 10% Cannot be determined from the question Q2. a) b) c) d) A call option value increases as Exercise Price Dividends Volatility None of the above ncreases: Q3. Which of the following statements is FALSE? a) A stock option gives the holder the option to buy or sell a share of stock on or b) A call option gives the owner the right to buy the asset. before a given date for a given price c) A financial option contract gives the writer the right (but not the obligation) to d) A put option gives the owner the right to sell the asset. Q4. Wyatt Oil has assets with a market value of $600 million, $70 million of which are purchase or sell an asset at a fixed price at some future date cash. It has debt of $250 million, and 20 million shares outstanding. Assume perfect capital markets. If Wyatt Oil distributes the $70 million as a share repurchase, then its stock price after the share repurchase will be closest to a) 11.00 b) $12.50 c) $14.00 d) $17.50