Question: Q1. A project's base case or most likely NPV is $44,000, and assume its probability of occurrence is 50%. Assume the best case scenario NPV

Q1. A project's base case or most likely NPV is $44,000, and assume its probability of occurrence is 50%. Assume the best case scenario NPV is 85% higher than the base case and assume the worst scenario NPV is 35% lower than the base case. Both the best case scenario and the worst case scenario have a 25% probability of occurrence. Find the project's coefficient of variation.

Q2. Rick Kish has a $140,000 stock portfolio. $50,000 is invested in a stock with a beta of 1.25 and the remainder is invested in a stock with a beta of 2.45. These are the only two investments in his portfolio. What is his portfolios beta?

Q3. ABC Company's stock has a beta of 1.95, the risk-free rate is 2.25%, and the market risk premium is 7.75%. What is ABC's required rate of return using CAPM?

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