Using the information provided below, calculate the expected standard deviation. Outcome Probability Return Recession 20% -25% Expansion 35% 15% Boom 45% 60% Select one: a. 32.88% b. 1058.69% c. 32.54% d. 957.38% Gamma Electronics is considering the purchase of testing equipment that will cost $335 000 to replace old equipment. Assume the new machine will generate after-tax savings of $105 000 per year over the next five years. What is the payback period for this investment? Select one: a. 2.80 years b. 1.8 years c. 2.0 years d. 3.19 years The cash flows associated with an investment project are as follows: Cash Flow -$65 000 Initial outflow Year 1 $20 000 Year 2 $30 000 Year 3 $30 000 Year 4 $30 000 What is the discount payback period of the project and should the project be accepted, or rejected, if a three-year cutoff period is mandated? The discount rate is 15%. Select one: a. 3.3 years; reject b. 2.7 years; accept c. 3.6 years; accept d. 3.6 years; reject The risk-free rate is 5% and the expected return on a market portfolio is 15%. If a share has a beta of 1.8, what is its expected return? Select one: a. 19.5% b. 23% c. 24.5% d. 17% A particular asset has a beta of 1.2 and an expected return of 17%. The expected return on the market portfolio is 13% and the risk-free rate is 5%. The asset is: Select one: a. appropriately priced b. underpriced C. overpriced d. There is not enough information to answer the question Great Electronics is considering the purchase of testing equipment that will cost $300 000 to replace old equipment. Assume the new machine will generate after-tax savings of $105 000 per year over the next five years. What is the payback period for this investment? Select one: a. 3.19 years b. 2.85 years c. 1.8 years d. 2.80 years