1. You are considering a project that costs $6000 and has expected cash flows of $2200, $2420, and $2662.00 over the next three years. If the appropriate discount rate for the project's cash flows is 10%, what is the net present value of this project?
a. $0.71
b. $19.79
c. $0.00
d. $64.10
e. The NPV is negative
2. Consider a portfolio made up of two risky assets and a risk-free asset. You invest 40% in asset A with a beta of 1.2 and 40% in asset B with a beta of 1.8. What is the beta of the portfolio?
a. 1.03
b. 1.20
c. 1.12
d. 0.96
e. 0.94