Multiple Choice Questions: Put tick on the box corresponds to the correct answer. 1. If the beta of EHL is 0.73, risk-free rate is 5.5% and the market rate of return is 9.5%, calculate the expected rate of return from EHL. 0 11.3% 13.2% 12.5% not given here 2. In three years you are to receive 50,000 Tk. If the interest rate were to suddenly decrease, the present value of that future amount to you would rise fall unchanged unknown 3. In CAPM, B (Beta) factor measures Return of an asset Risk of an asset Life of an asset. Capital investment 4. The is the discount rate that equates the present value of the cash inflows with the initial investment payback period average rate of return cost of capital internal rate of return 5. Which statement is true about capital budgeting? One must take a project as long as NPV is positive IRR is the rate where NPV is positive Both NPV and IRR use time value of money concept All above statements are false