Consider the Capital Market Line. Given that the expected return on the market portfolio is 14%, the risk-free rate is 2%, and the standard deviation of the market portfolio is 26%, the market price of risk would be:

	a.	.54
	b.	.62
	c.	1.71
	d.	.51
	e.	.46

Decisions-Decisions, Inc. is evaluating three potential projects. Given the information in the table below, the fact that the firm can invest no more than $30 million, and the hurdle rate is 12%, the firm should invest in:

Year	Projects ($ in millions)
	1	2	3
0	14	15	30
1	24	41	68
2	50	62	94
NPV	47.29	71.03	105.65

	a.	projects 1 and 3
	b.	only project 3
	c.	only project 1
	d.	only project 2
	e.	projects 1 and 2