Your portfolio has provided you with returns of 26.3 percent, 19.8 percent, 4.6 percent, and 7.9 percent over the past four years, respectively. What is the geometric average return.

A. 8.06 percent

B. 9.27 percent

C. 10.25 percent

D. 11.71 percent

E. 14.31 percent

____________

The common stock of Detroit Engines has a beta of 1.34 and a standard deviation of 11.4 percent. The market rate of return is 11.5 percent and the risk-free rate is 3 percent. What is the firms cost of equity?

A. 10.05 percent

B. 12.98 percent

C. 14.39 percent

D. 15.50 percent

E. 15.67 percent