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QUESTION 13 If the nominal rate of return on Aksoy Corporation stock is 15%, the pure rate is 3%, and the inflation premium is 5%

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QUESTION 13 If the nominal rate of return on Aksoy Corporation stock is 15%, the pure rate is 3%, and the inflation premium is 5% what is the risk premium on Aksoy stock? a. 0%. b. 7%. c. 6.3396 d. 8.15% QUESTION 14 Compared to the present value of cash flows to be received five years from now, the present value of cash flows to be rceived ten years from now is volatile when interest rates change a. less b. twice as c. more d. equally Campbell Company has current assets of $3 million of which $750,000 are accounts receivable. Its current liabilities total $2 million of which $500,000 are accounts payable and $100,000 are wages payable. Campbell's net credit is: a. $150,000 b. $250,000. c. $1,000,000. d. $650,000 QUESTION 16 If the risk-free rate is 4 percent and the market price of total risk required by investors is 0.05% for each dollar of standard deviation, what is the required rate of return from an investment with a standard deviation equal to $200? a. 1496 b.4.05%. c. 10%. d.4%. QUESTION 17

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