Part $1.$ Which one of the following statements is accurate?

A$.$ Diversified portfolio with returns similar to the overall market$$

B$.$ Stock with a beta of $\mathrm{.}63$

C$.$ Portfolio with a beta of $1\mathrm{.}12$

D$.$ Stock with a beta of $1\mathrm{.}24$

E$.$ U$.$S$.$ Treasury bill

Part $2.$ Carson Electronics uses $56$ percent common stock and $44$ percent debt to finance its operations. The aftertax cost of debt is $5\mathrm{.}4$ percent and the cost of equity is $15\mathrm{.}3$ percent. Management is considering a project that will produce a cash inflow of $$49,600$ in the first year. The cash inflows will then grow at $2\mathrm{.}5$ percent per year forever. What is the maximum amount the firm can initially invest in this project to avoid a negative net present value for the project?

A$.$ $$544,815$

B$.$ $$599,032$

C$.$ $$411,406$

D$.$ $$573,941$

E$.$ $$427,439$