1. During February 2015, its first month of operations, the owner of 'young Recording' invested $50,000 of cash into the company. Young Recordings has sales of $80,000 and paid expenses of $40,000. Assuming no other transactions impacted the cash account, what is the balance in cash on February 28?
2. If the risk- free rate is 2%, the expected return on the market is 10% and the expected return on firm X's stock is 8%, then what must firm X's beta coefficient equal?