1. Vaquero's stock has an expected return of 16.50%, a beta of 1.5, and is in equilibrium. If the risk-free rate is 6.00%, what is the market risk premium?
A. 5.20% B. 4.26% C. 7.00% D. 4.06% E. 3.90%
2. Eventually, the system of fixed exchange rate under the Bretton Woods Accord collapsed when
a. many countries refused to accept dollars as payment for goods and services in international markets.
b. U.S. suspended international conversion of dollars into gold.
c. the British pound doubled in value relative to the dollar.
d. the Bretton Woods Accord was repealed by the IMF.