1. Which of the following statements about the International Finance Corporation (IFC) is false?
All of these options are true.
The IFC assumes no managerial responsibility and exercises no voting rights.
The IFC may either buy equity shares or provide long-term loans.
The decision to assist a venture depends on both the profitability of the project and the potential benefit to the host country's economy.
2. The company’s beta is 0.90 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%