The risk-free rate of return is currently 5.6 percent and the market portfolio return is estimated to be 14.2 percent. The expected returns and betas of four shares are as follows:

Share	Beta	Expected Return (%)
A	1.20	15.62
B	1.44	17.98
C	1.45	18.07
D	1.47	18.24

According to CAPM which stocks are overvalued?

		C and D
		Only B
		Only D
		Only A
		D and B

A 15-year, semiannual coupon bond sells for $938. The bond has apar value of $1,000 and a yield to maturity of 8.3 percent. What is the bond's coupon rate in percentage terms?

		8.87
		7.57
		8.89
		9.08
		9.04

Mka, Inc., just paid $8.6 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 3.6 percent. If you require a rate of return of 14.7 percent, how much are you willing to pay today to purchase one share of the company's stock?

		80.27
		71.54
		95.18
		61.85
		64.01

The table below lists the projects that your company is considering to invest:

Project	Payback Period (Years)	NPV (USD)	IRR (%)
A	3.2	45000	14.18
B	2.9	13000	16.25
C	2.9	15000	16.51
D	2.1	16000	15.81
E	3.7	26000	14.97

The required return is 12.9 percent. Which project should be accepted if they are mutually exclusive?

		C
		E
		D
		A
		B