Questions 1-4 refer to the following graph of risk vs. return for a basket of possible portfolios, where each lettered point represents a different portfolio. The shaded area represents all possible stock portfolios Expected return 8.0% - 3.0% 0% 4.0% Risk 1. Which stock portfolio is dominated? A. A , C. F D. all of the above are dominated 2. Which stock portfolio has the lowest return? A. A , c. c D. G 3. If the risk free rate is 30%, what is the market risk premium? A, 3.0% B. 4.0% C. 5.0% D. Not possible to tell with the information given 4. Which stock portfolio has the lowest Beta? A. A , c, c D. G 5. Growing profits from profits on previous investments is: A. discounting B. multiplying C. compounding D. computing 6. Which is an example of discounting? A. Prejudice B. Depreciation C. Interest payments on bonds D. Future free cash flows 7. The interest rate on the U.S. 10-year Treasury measures: B pre D. Fint + pretrisk 8. The WACC measures a firm's: B. pr 9. An NPV of -$100K means: A. The project is expected to destroy economic value. B. The project's cost of capital is more than its expected IRR. C. The project is expected to lose $100K. D. All of the above. 10. As of today, MU's wACC-9.8% and SBUX's WACC+ are publicly traded companies. This means 4.3%. Both MU (Micron) and SBUX (Starbucks) A. MU's cost of capital is higher than SBUX's B. The market views MU as riskier than SBUX C. Both A and 8 D. None of the above 11. An NPV of +$100K means: A. The project is expected to create economic value. B. The project is expected to earn more than its cost of capital. C. The project is expected to have $100K in profit D. All of the above