1. Consider a portfolio made up of two risky assets and a risk-free asset. You invest 36% in asset A with a beta of 1.2 and 40% in asset B with a beta of 1.1. What is the beta of the portfolio? Select one: a. 0.87 b. 0.94 c. 1.20 d. 0.96 e. 1.12
2. _________ interest rates are posted by financial institutions for GICs. Select one: a. Normative b. Holding period c. Nominal d. Real e. Adjusted
3. Kathy can purchase a new vehicle for $230,000 that will provide annual net cash flow over the next 3 years of $95,000; $99,000; $88,000. Calculate the NPV of the vehicle if the discount rate is 5%. a. $67,068 b. $9,646 c. $26,290 d. $25,038 e. $38,571 f. $42,966 g. $27,943.