1. Amon Amarth’s stock has an expected return of 13 percent and a beta of 0.9. If the risk-free rate is 4.55 percent, what is the expected return of the market portfolio according to CAPM?
12.94%
13.24%
14.50%
9.39%
2. Consider the following cash flow in $ for a project. What is the maximum number of rates of return greater than -100% that this cash flow may have, for n = 0 through 5? Enter your answer as an integer, and the answer could be 0. NOTE: You should not try to calculate or find the rates of return.
4,000
-2,600
-1000
2,200
990
-410