Please help answer the following questions in the format of 1= answer (A), 2= answer (c) and so on. All of the questions have A,B,C, or D answers. Please help!

1. In the Capital Asset Pricing Model, the market risk premium is best approximated by:(Points : 1)

the most recent one-year return on the S&P 500 Index (or another market index).

the long-term historic return on a stock market index such as the S&P 500 (or another market index).

the long-term average spread of the S&P 500 (or another market index) over the yield of long-term government bonds.

the return of the S&P 500 (or another market index) over the current yield of long-term government bonds.

Question 2. 2. Which of the following statements regarding the cost of preferred stock is true?(Points : 1)

It is typically found by solving for an annuity's discount rate. It is typically found by solving for an annuity due's discount rate. It is found similarly to a perpetuity's discount rate but with irregular spacing of the dividends. It is typically found by solving for a perpetuity's discount rate.

Question 3. 3. Chapter 9 discusses three different types of returns. Identify the item in the list below that is NOT one of those three types of returns.(Points : 1)

the actual rate of return the expected rate of return the risk-free rate of return the required rate of return

Question 4. 4. In the Capital Asset Pricing Model, the market risk premium can be thought of as:(Points : 1)

the return investors expect to earn for each unit of risk as measured by beta. the risk premium that any asset must pay above the risk-free rate. the expected return on the market portfolio (or a broad market index). a measure of risk of an asset.

Question 5. 5. One way to think about the required rate of return is:(Points : 1)

as the highest return a risk-averse investor wants from an investment. as the risk-free rate of return plus a risk premium. as the historical rate of return plus a risk premium. as a comparison between the expected and historical rates of return.

Question 6. 6. Total risk is measured by:(Points : 1)

the standard deviation of returns. the firm's beta. Moody's, Standard & Poor's, and Fitch ratings. the variability of EBIT.

Question 7. 7. Which of the following statements regarding the cost of equity is true?(Points : 1)

It can be estimated in three different ways. It is always estimated using the present value of future dividends approach. It is estimated by solving for the discount rate for a perpetuity. It is generally lower than the cost of debt because equity holders are paid after taxes are paid.

Question 8. 8. Suppose a zero-coupon bond is selling for $614.00 today. It promises to pay $1,000 in exactly 10 years with annual compounding. What is the firm's after-tax cost of debt if this is its sole debt outstanding (assuming the firm is in the 20% tax bracket)?(Points : 1)

4% 5% 6% 7%

Question 9. 9. We assume investors are risk averse, and therefore they:(Points : 1)

are equally concerned with upside potential and downside risk. expect a higher return for bearing more risk. will pay more for an investment with higher risk. have very high required rates of return.

Question 10.10. Beta is estimated as the slope of a regression line fit to pairs of periodic returns, (r_x, r_y), where:(Points : 1)

r_x is the return for a market index such as the S&P 500 Index. r_xis the return for the stock being analyzedfor example, IBM's return if we are estimating IBM's beta. the slope measures the average return for the market portfolio for each percentage change in the value of the security of interest. r_yis the return for the market index such as the S&P 500 Index.