Q1.1 Question 1, Part (a) 3 Points A security has a beta of 10 and a required return according to the CAPM of 12%. In equilibrium, If the market portfolio's expected return is also 12% then the risicfree rate of return in this case will most rely be 0% Enter your answer here Please selecties Selections Q1.2 Question 1, Part (b) 3 Points An implication of the trade-off theory of capital structure decisions is that a company achieves its optimal debt equity ratio where the present value of the debt tax shield equals the present value of bankruptcy and agency costs. Enter your answer here Please selecties Select Q1.3 Question 1, Part (c) 3 Points An investor expects the price of KLN Ltd to fall over the next few days. An easy way to malcea riskfree profit is for the investor to sell call options on the company's shares today. Enter your answer here Please selectie Select Q1.4 Question 1, Part (d) 3 Points As options are contracts that give an investor the right to either buy or sell the underlying shares, any factor that increases the price of a put option will decrease the price of a call option. Enter your answer here Please selecties Select Q1.5 Question 1, Part (e) 3 Points For mutually exclusive projects, the incremental IRA approach to capital budgeting reconciles the IRR and NPV methods because this approach overcomes the problems associated with multiple RRs or no Enter your answer here