1. If an investment project ha a positive net present value, then the internal rate of return is 1. less than the cost of capital, 2. greater than the cost of capital, 3. equal to the cost of capital, 4. indeterminate, it depends on the length of the project.
2. List five common features of written reports and explain what each feature does. (180–210 words)
3. Using CAPM [LO4] A stock has an expected return of 12 percent, its beta is 1.3, and the expected return on the market is 11 percent. What must the risk-free rate be?