Suppose the risk free rate of interest is 4% and the market risk premium is 5%. A

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Suppose the risk free rate of interest is 4% and the market risk premium is 5%. A company with a stock beta of 1.2 has a cost of equity closest to:

A. 1.2%.

B. 6%.

C. 10%.

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Miguel Andujar

Administrative Director, Dominican Republic Consulate Boston, MA. • Trained quality personnel to analyze and oversea commodities prices as well as risk. • Developed process flow and control plans working in collaboration with a team • Supervised quality of production of visas, powers of attorney, and passports • Supervised monthly and annual inventory • Promoted foreign investments and cultural exchange Contributor , Acento.com.do Acento.com.do, Santo Domingo, Dominican Republic • Wrote weekly newspaper columns about commodities based on fundamental and technical analysis. • Produced numerous articles about current news in the financial markets System Administrator/Account Manager , IBM Corporation • Maintained Honeywell’s account, supporting 1500 servers (Windows 2008, Windows 2003, Windows 2000 and Windows NT), VMware ESX servers 4.0 and Virtual Center 4.5 • Supervised snapshots, migrations, and storage relocation • Planned and implemented several technologies for customers such a switching to virtualization from physical servers, reallocation of web servers (from Apache to IIS), migration from Edirectory to Active Directory.

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