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These questions please 6) If the NCO is equal to -$100,000 and the cash flows are $300,00 a year for 4 years, the cost of
These questions please
6) If the NCO is equal to -$100,000 and the cash flows are $300,00 a year for 4 years, the cost of capital is 12%, determine the NPV of the project. A) S-911,205 B) $59.890 C) S-750,00 D) None of the above 7) Assuming that the mean of the stock market is 10.00% and the standard deviation is 20%, within a 95% probability what are the possible returns? A) -30% to 50% B) -10% to 30% C)-9.56% to 20.2% D) None of the above 8) Assuming the risk free rate is 3% and the risk premium of the market is 10.50%, if beta is equal to .90, then the return on the stock is equal: A) 10.98% B) 12.45% C) 10.45% D) None of the above 9) If the financial markets are semi - strong efficient then this means: A) The price of the stock reflects all past information B) The price of the stock responds to publically available information C) The price of the stock reflects all non-public available information D) All of the above 10) If the covariance of security A and the Market is 110%, the variance of security A 150%, and the variance if the market is 95%, the correlation is equal to: A) .77 B) .68 C) .92 D) None of the above Step by Step Solution
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