1. A firm has beginning inventory of 270 units at a cost of $7 each. Production during the period was 690 units at $16 each. If sales were 760 units, what is the cost of goods sold (assume FIFO)?
$9,530
$9,930
$9,730
$10,030
2. The market portfolio has an expected return of 18% and the risk-free rate is 6%. An investor borrows $100 at the risk-free rate and invests this and a further $100 of his own in the market portfolio. What is his expected return?
a) 19.6%
b) 21.6%
c) 18.6%
d) 30.0%