1. Determine the expected return of the asset using the following information:

- Yield on long-term government bond: 1.85%

- Yield on corporate bond: 2.35%

- Average annualized market return: 6.45%

- The beta of the asset is 0.5

4.15% 6.07878% 3.75% 4.4%

2. Why would an investor pay a premium for voting rights on their common shares? Select one or more correct answers.

Lower risk Influence corporate policy changes Less capital gains tax Higher return

3. Why would an investor purchase securities over-the-counter (OTC) instead of through a public stock exchange? Select one or multiple correct answers.

Safer companies Less public information Access unlisted securities Larger companies

4. Company A has 36.88 million shares outstanding trading at $2.78 each (the same shares were $3.11 last week).

Company B has 126.15 million shares outstanding trading at $11.42 (the same shares were $11.21 last week).

What market cap size are the two companies considered?

Company A is micro cap, Company B is large cap Company A is small cap, Company B is mega cap Company A is small cap, Company B is small cap Company A is micro cap, Company B is small cap