(xi) A stock has a beta value of 1.4. The risk free rate is 4.5% while an expected return I. The market risk premium is 6.3% II. The expected retum on investment amounts to 11.55% III. The stock is riskier than the market. Which statement/s is/are correct? A. All the three B. I only C. I and III D. II and III [4 marks] (xii) Elizabeth wishes to borrow Rs 1,500,000 which will be repaid over a period of 25 years on a monthly basis. She has been told that the Annualised percentage Rate is 4.5% at HSBC. ABSA can offer the same amount with the same conditions but with a rate of 3.75%. What is the difference in the monthly payments for the two banks? A. Between 200 and 250 B. Between 300 and 350 C. Between 500 and 550 D. Between 600 and 650 [5 marks] (xiii) Charles has been approached by a pension company where he will have to contribute a monthly sum so that after 20 years when he will retire, he will have at his disposal a sum of Rs 1,800,000. The Annualised Percentage Rate has been estimated to be 7.2%. What should be his monthly contribution? A. 3,372 B. 3,572 C. 3,772 D. 3,972 [5 marks]