Question 36 (0.5 points) Consider a portfolio that is composed of the following stocks. The treasury rate is 3%, the market risk premium is 5%. What is the expected return of the portfolio? Stock Amount Invested Beta A $4 million 1.8 B $2 million 1.6 C $2 million 1.4 D $1 million 0.8 E $1 million 0.4

Question 36 options: 9.8% 9.0% 10.2% 11.0% 12.4%

Question 37 (0.5 points)

You are considering whether you should start a mini apple farm. It requires an initial investment of $55,000; the farm will bring in $22,000 in year 1; the cash inflows will increase by 5% in years 2 and 3. There are no cash inflows after Year 3. What is the projects Internal Rate of Return?

Question 37 options:

	12.3%
	10.0%
	9.7%
	14.4%
	8.9%