QUESTION 8 $7,000,000.00 is invested at the beginning of January. On January 14 another $600,000.00 is invested in the same account. At the end of January, the account is worth $6,370,000.00. The cash-flow adjusted rate of return for January is % (percent, rounded to three places after the decimal) QUESTION 9 We expect a return on the market of 11.100% and a risk free rate of 2.700%. We expect that in this market, Discovery Cafe will generate a return of 26.600%. Thus, we can calculate that Discovery Cafe has a beta of (rounded three places after the decimal QUESTION 10 Kevin Partner purchased shares of Torchwood Security on the open January 2 at $61.90 per share. He earned a dividend of $0.13 in February. Kevin kept his dividend in cash - he did not reinvest it. Torchwood Security closed at January: $55.85 February: $57.83 March: $60.53 The total time-weighted rate of return for the calendar quarter is % (percent, rounded three places after the decimal) 43 QUESTION 11 According to the Student Code, representing the words, work, or ideas of another as his or her own in any academic endeavor constitutes plagiarism. True False QUESTION 12 William Gates III gives me $8,000,000.00 to invest. At the end of the first year, I report to William Gates Ill a loss of 27% for the year. However, at the end of the second year, I report a gain of 42% for the year. The actual average annual return on the portfolio was %. (percent, rounded three places after the decimal) QUESTION 13 We expect a return on the market of 11.900% and a risk free rate of 4.100%. Using data over the past five years, we measure the rate of return on Cerigo Olive Oil as 15.369% with a beta of 2.61. Therefore we calculate Jensen's Alpha on Cerigo Olive Oil as % (percent, rounded three places after the decimal)