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Question 6 (4 points) Listen If the risk-free rate is 5.0%, the expected return on the market is 14.0%, and the expected return on Security

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Question 6 (4 points) Listen If the risk-free rate is 5.0%, the expected return on the market is 14.0%, and the expected return on Security J is 28.0%, what is the beta for Security J? 2.55 1.64 3.11 1.46 2.16 Question 10 (4 points) Listen What is the expected return for the following portfolio? (State your answer in percent with two decimal places.) Stock Expected returns Investment AAA 341 $400,000 BBB 294 $1,100,000 CCC 194 $1,500,000 DDD 51 51.400 000 22.66% 16.26% 19.94% 21.08% 18.41% Question 11 (4 points) Listen You are considering buying a stock with a beta of 1.50. If the risk-free rate of return is 7.0%, and the market risk premium is 12.0%, what should the expected rate of return be for this stock? 25.00% 14.50% 32.98% 11.93% 21.50%

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