1. Which of the following firms has the smallest beta?
a- Wal-Mart (discount retail store)
b- Vale (commodity/mining)
c- Abercrombie & Fitch (apparel)
d- Pfizer (pharmaceutical)
e- Apple (tech)
2. The company's Beta is 1.2 and the expected risk premium for the market portfolio is 7.5%.
What equilibrium risk premium for the company's stock is implied by the capital asset pricing model?
a- 6.8%
b- 7.4%
c- 6.1%
d- 8.2%
e- 9.0%
3. Interest Exp should be subtracted when calculating CF from proposed investment project before applying CP techniques. (T/F)