Your estimate of the market risk premium is 9%. The risk-free rate of return is 3.8% and General Motors has a beta of 1.4. According to the Capital Asset Pricing Model (CAPM), what is its expected return? Question 29 options:

A) 16.4%

B) 17.2%

C) 14.8%

D) 15.6%

A portfolio comprises Coke (beta of 1.4) and Wal-Mart (beta of 0.8). The amount invested in Coke is $20,000 and in Wal-Mart is $30,000. What is the beta of the portfolio?

Question 30 options:

A)

1.04

B)

1.20

C)

1.35

D)

1.25

The book value of a firm's equity is $100 million and its market value of equity is $200 million. The face value of its debt is $50 million and its market value of debt is $60 million. What is the market value of assets of the firm?

Question 32 options:

A)	$160 million

B)	$150 million

C)	$260 million

D)	$250 million