1. Farrell Motors stock has a beta of 1.3. If the market risk premium is 8.5 per cent and the risk- free rate is 4 per cent, what is the expected return of the stock according to the Security Market Line?
2. Explain the difference between direct and indirect costs and provide some examples. Also, how do direct and indirect costs affect a healthcare organization?
3. The market's required return on Gitche Gumee Oil Company stock is currently 13.8 per cent. If the expected return on the market portfolio is 12.6 per cent and the risk-free rate is 3.5 per cent, what is the beta of Gitche Gumee stock?