1. Interest rate is need to be able to calculate an NPV.
-true
-false
2. The tax deductibility of expenses ______ their after tax cost (assume a tax paying firm).
-increases
-decreases
-has no effect on
-has an undetermined effect on
-either increases or decreases, depending on whether it is for a sole proprietorship or a corporation
3. You own $6,069 of Human Genome stock that has an assumed beta of 3.59. You also own $6,936 of Frozen Food Express (assumed beta = 2.42) and $15,895 of Molecular Devices (assumed beta = 0.56).
What is the beta of your portfolio?
Portfolio beta =