Part 2 Multiple Choice (5 points each) Type the letter of your choice in the yellow-highlighted cell below each item. Question 6 Holding all else constant, a company's current ratio would decrease due to a decrease in: 5 points a. accounts payable. b. accounts receivable. c. common equity. d. net fixed assets. e. notes payable. Your response: Question 7 Assume that CAPM holds. Which of the following statements is TRUE? 5 points a. Beta indicates a stock's diversifiable risk. b. Two stocks with the same stand-alone risk must have the same betas. c. The slope of the security market line is given by the market risk premium. d. If the beta of a stock doubles, then its required rate of return must also double. e. If the risk-free rate decreases, then the market risk premium must also decrease. Your response: Question 8 For a stock that is in market equilibrium, dividends are expected to grow at a constant 5 points rate of 4% indefinitely. Which of the following statements about this stock is TRUE? a. Its dividend yield is 4%. b. Its expected rate of retum is 4%. c. Its required rate of return is less than 4%. d. Its price is expected to decrease in the future. e. Its price one year later is expected to be 4% above its current price. Your response