Please answer 31-48

The market value of Charcoal Corporation's common stock is S20Millon, and the market value of its risk-free debt is $5Million. The beta of the company's common stock is 1.25, and the market risk premium is 8%. If the Treasury bill rate is 5%, what is the company's cost of capital? Assume no taxes). A.15% B. 14.6% 13% D.7% 32 An investment portfolio that offers the highest possible return for a given level of investment i considered: A. Aggressive B. Growth Oriented C. Efficient D. Liquid 33. The Sharpe Ratio is reports the relationship between: A. Risk Premium to Standard Deviation 8. Variance to Standard Deviation C Overall Return to the Risk-Free rate of Return D. Beta to Standard Deviation 34. A well-diversified portfolio will most probably include which of the following: A. Stocks of companies in the financial services business B. Stocks that have a Sharp ratio less than 1 (one) c. Perfectly correlsted stocks D. Some stocks with betas grester than 1 (one) and some with a beta less than 1 (one) 35. The Market Risk Premium (MRP) is the difference between the market return and the risk-free rate of return. Since 1900 the MRP has averaged between: A, 0% and 2.0% B. 2.0% and 4.0% C. 4.0% and 6.0% D. 6.0% and 8.0%