1. Steve is evaluating the expected performance of Illumina Labs, Inc. The risk-free rate is 5.5 percent, the expected return on the market is 12.8 percent, and the beta of the stock is 1.7. Steves own forecasts of the returns on the stock is 17.00 percent for Illumina Labs. Is Illumina lab undervalued, fairly valued, or overvalued?

   	a.	Undervalued
   	b.	All of the above
   	c.	Overvalued
   	d.	Can't determine
   	e.	Fairly valued

   is an independent agency of the U.S. federal government that was created following the stock market crash of 1929 to protect investors and maintain fair, orderly, and efficient market. It requires public companies to submit quarterly and annual filings, and other reports.

   	a.	NYSE
   	b.	SEC
   	c.	CFTC
   	d.	FED
   	e.	CBOE

   When investors allocate their money between risk-free asset and tangency portfolio, the allocation to tangency portfolio:

   	a.	decreases with a higher expected tangency portfolio return
   	b.	increases with a higher risk-free rate
   	c.	increases with a greater variance of tangency return
   	d.	decreases with a higher level of risk aversion
   	e.	decreases with a higher Sharpe ratio