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Which of the following is generally considered to represent the risk-free return? A) Common stocks B) Small stocks C) Long-term government bonds D) Long-term corporate

Which of the following is generally considered to represent the risk-free return?

A) Common stocks

B) Small stocks

C) Long-term government bonds

D) Long-term corporate bonds

E) Treasury bills

12) A stock asset has a beta of 1.6 and an expected return of 19%. A risk free asset has an expected return of 5%. What is the expected return of a portfolio equally invested in the two assets?

9%

10%

12%

14%

18%

13) All else the same, a LOWER corporate tax rate _____________________.

A) will decrease the WACC of a firm with some debt in its capital structure

B) will increase the WACC of a firm with some debt in its capital structure

C) will not affect the WACC of a firm with some debt in its capital structure

D) will decrease the WACC of a firm with no debt in its capital structure

E) will change the WACC of a firm with some debt in its capital structure, but the direction is unclear.

14) In 1958 the average tuition for one year at an Ivy League school was $1,800. Sixty years later, in 2018, the average cost is projected to be $73,700. What was the growth rate in tuition over the 60-year period?

A) 2.27%

B) 8.36%

C) 6.38%

D) 4.54%

E) 2880%

15) Big Game, Inc. has 8% coupon bonds, with a quarterly coupon, on the market with 24 years left to maturity. If the yield to maturity is 10% and face value is $1,000, what is the bonds current price?

$803.98

$789.42

$1046.78

$818.68

The answers are bold but i need to know how you found the answers

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