q1 Project Beta is a 3-year project which requires an initial outlay of $4,000. This outlay will be depreciated usingstraight-line depreciation over the life of theproject. It will generate incremental revenue of $8000 per year and incremental costs (excluding depreciation) of $1200. The tax rate is 35%.

What is the project's annual incremental EBIT?

a.$8133

b.$5467

c.$5467

d.$4133

q2

On a given day the excess return on the Australian stock market is -2.1%. On the same daythe excess return on ShareABC is -1.4%. If there were NO unsystematic risk factors affecting the share on that day, what is your estimate of the share's beta?

a.1.50

b.1.68

c.0.58

d.0.67

q3

What is the future value of $4000 invested for 4 years, if the interest rate is 12% p.a., compounding quarterly?

a.$6419

b.$6612

c.$5920

d.$6294

q4

Which of the following would be evidence that the market is not weak-form efficient?

Select one:

a.

There is a predictable relationship between successive price changes.

b.

Mechanical trading rules consistently outperform a "buy and hold" strategy.

c.

Analysis of publicly available information enables mispriced securities to be consistently identified.

d.

Both (a) and (b).

q5-

Which of the following statements is TRUE?

Select one:

a.

Unsystematic risk is also known as undiversifiable risk.

b.

Unsystematic risk is also known as market risk.

c.

Unsystematic risk is also known as independent risk.

d.

Unsystematic risk is also known as common risk.