6. If you are promised a nominal return of 12% on a one year investment, and you expect the rate of inflation to be 3%, what real rate do you expect to earn? [5 (2 Points) 5.48% 8.74% 12.00% 9.00% 11. Beta is alan [5 (2 Points) measure of unsystematic risk measure of diversifiable risk none of the above absolute measure of risk relative measure of risk 14. The of an industry is a function of retention rate and return on equity. 15 (2 Points) expected financial risk Pes expected growth rate expected business risk expected return 13. Which of the following is not a stage in the industrial life cycle? IT (2 Points) Mature growth Stabilization and market maturity Acquisition and consolidation Rapid accelerating growth Early pioneering development 16. Defensive stocks has m (2 Points) low systematic risk high financial risk high systematic risk high beta 18. Basil Company is expected to pay a dividend of $1.50 in the upcoming year. The risk-free rate of return is 6%, and the expected return on the market portfolio is 14%. Analysts expect the price of Basil Company shares to be $29 a year from now. The beta of Basil Company's stock is 1.2. Using the CAPM, What is the appropriate required return on Basil Company's stock (2 Points) 8% 10.8% @ 15.6% 16.8%