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please answer all question = Table Tools FM 5 BSB1525 (1) - Microsoft Word Review View Design Layout FETT 21 | Home Insert Page Layout

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= Table Tools FM 5 BSB1525 (1) - Microsoft Word Review View Design Layout FETT 21 | Home Insert Page Layout References Mailings * Cut Tahoma 11 AN - Copy Paste Format Painter BI U she x, x' Aa Clipboard Font A Find - 43. Replace AaBbCc AaBbCcI AaBbCcl AaBb C AaBbCcl AaBbCI AaBbCcDc apple-conve. 1 Default Emphasis Heading 1 Heading 3 I Normal Plain Text Styles Change Select Styles - Paragraph Editing ASSIGNMENT DIRECTION & REQUIREMENT/S PART 11.Suppose two projects A and B have the following cash flows CASH FLOWS YEAR Project A Project B 0 ($700) ($700) 1 100 300 2 200 300 3 300 300 4 400 300 5 500 300 Q1. What is the payback period for project A and B. Q2. Asset P has a beta of 0.9. The risk-free rate of return is 8 percent, while the return on the market portfolio of assets is 14 percent. What is the asset's required rate of return? Q3. A firm is evaluating a proposal which has an initial investment of $35,000 and has cash flows of $10,000 in year 1, $20,000 in year 2, and $10,000 in year 3. Calculate the payback period of the project. Q4. The covariance of the returns on the two securities, A and B, is -0.0005. The standard deviation of A's returns is 4% and the standard deviation of B's returns is 6%. What is the correlation between the returns of A and B? Q5. Company X has a beta of 1.45. The expected risk-free rate of interest is 2.5% and the expected return on the market as a whole is 10%. Using the CAPM, what is ABC's expected return? 3D 100% Words: 150 IT: ENG ET"/-/- US [ ? O

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