You are considering an investment in Citizens Bank Corp. The firm has a beta of 1.6. Currently, U.S. Treasury bills are yielding 2.75% and the expected return for the S & P 500 is 14%. What rate of return should you expect for your investment in Citizens Bank?.

a.

20.75%

b.

15.39%

c.

11.15%

d.

16.75%

To find the present value of a sum of Rs. 10,000 to be received at the end of each year for the next 5 years at 10% rate, we use?.

a.

Future value of a single cash flow table

b.

Present value of annuity table.

c.

Present value of a single cash flow table

d.

Future value of annuity table

Assume that you expect to hold a $40,000 investment for one year. It is forecasted to have a year end value of $42,000 with a 30% probability; a year end value of $48,000 with a 45% probability; and a year end value of $60,000 with a 25% probability. What is the expected holding period return for this investment?.

a.

18%

b.

25%

c.

50%

d.

23%