QUESTION 27 Using CAPM. A stock has a beta of 1, the expected return on the market is 14%, and the risk-free rate is 5%. What is the expected return on this stock? 12% 13% 14% 15% QUESTION 28 Using CAPM. A stock has an expected return of 4%, the risk free me is 5%, and the market risk premium is 7%. What must the heta of this stock be? -0.14 0 0.55 1.3 the market be QUESTION 29 Using the CAPM. A stock has an expected return of 10%, and its beta is 0.5. The risk free rate is 4%. What must the expected return 14% 15% 16% 17% QUESTION 30 You are considering whether you should place a wind farm in Marcy NY. You have paid $50,000 for an analysis of the wind speed through the Mohawk Valley. The $50,000 is already paid, and so it is not contingent on whether you accept the project. You should include this $50,000 as a cost when calculating the project's NPV. True False the project and NPV will say the project. QUESTION 31 You are using both the payback and NPV decision rules. The payback threshold is 2 years. If a project has a payhock of 5 years and an NPV of $1,000,000,000 then payback will say acoupl: accept acoupl: reject reject; accept reject: reject QUESTION 32 You calculated the NPV for a solar power project and it is negative. However accepting the solar power project will give you the option to build a factory. The NPV of the combined solar power and factory project is positive. You should accept the combined project. True False