Question: question 11) A project has the following expected cash flows: CF0=$500, CF1=$200, CF2=$200, and CF3=$400. If the projects cost of capital is 9%, what is
question 11) A project has the following expected cash flows: CF0=$500, CF1=$200, CF2=$200, and CF3=$400. If the projects cost of capital is 9%, what is the NPV?
Question 11 options:
|
| $158.50 |
|
| $150.70 |
|
| $200.35 |
|
| $160.70 |
Question 13 (2 points)
The following table shows the annual expected returns for two stocks.
| Probability of return | Stock A | Stock B |
| 0.10 | -3% | -10% |
| 0.20 | 2 | 1 |
| 0.40 | 7 | 8 |
| 0.20 | 12 | 16 |
| 0.10 | 17 | 24 |
If a portfolio is made up of 50% of Stock A and 50% of Stock B, is the portfolios standard deviation assuming that the correlation between the two stocks is 0.50.
Question 13 options:
| 5.48% | |
| 8.98% | |
| 6.58% | |
| 6.32% |
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