Moving to another question will save this response. Question 12 >> 5 points Save Answer Portfolio A is a well-diversified portfolio that is equally-weighted among 12.000 different and diverse stocks. Portfolio A has an average amount of systematic risk, so it has exactly the same amount of systematic risk as the market portfolio Portfolio B consists of 2 stocks that operate in the active leisure industry: 3.711 shares of Treetop Entertainment stock, which has a price of $13.00 per share and a beta of 2.10: and 1,427 shares of Garfield Recreational stock, which has a price of $4.80 per share and a beta of 0.50. All stocks have some unsystematic risk and all stocks have the same level of unsystematic risk. Which one of the following assertions is most likely to be true? O Portfolio B has more systematic risk than portfolio A, and portfolio A has more unsystematic risk than portfolio B O Portfolio A has more systematic risk than portfolio B, and portfolio A more unsystematic risk than portfolio B O Portfolio B has more systematic risk than portfolio A, and portfolio B has more unsystematic risk than portfolio A O Portfolio A has more systematic risk than portfolio B, and portfolio B has more unsystematic risk than portfolio A O Portfolio A either has the same amount of systematic risk as portfolio B or portfolio A has the same amount of unsystematic risk as portfolio B, or portfolio A has the same amount of systematic risk and unsystematic risk as portfolio B A Moving to another question will save this response. >> A Moving to another question will save this response. Question 11 5 points Save Answer Erie Shipping, which currently transports goods in ships across oceans, is considering project A which would involve transporting goods in trains over railroad tracks. For most of its existence, Erie Shipping transported goods in ships, trains, and trucks. Project A would require an initial investment of $29,500.00 and is expected to produce annual cash flows of $2,713.00 each year forever with the first annual cash flow expected in 1 year. What is the NPV of project A based on the information in this paragraph and the following table and applying the pure play approach to determining a project's cost of capital? Firm Line of Business Erie Shipping Thomas Shipping Transports goods in ships across oceans Transports goods in trains over railroad tracks CB Truckers Transports goods in trucks on roads Diversified Shipping Transports goods in ships, trains, and trucks O $-5448.58 (plus or minus $10) O $-12586.03 (plus or minus $10) O $-9639.09 (plus or minus $10) O $53.38 (plus or minus $10) O None of the above is within $10 of the correct answer A Moving to another question will save this response.