Hi, these Are Multiple Choice Questions below. Just select the correct one no need of...

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Finance

Hi, these Are Multiple Choice Questions below. Just select the correct one no need of much explanation. Subject- Financial Management.

Question 1).

Big Bank charges 5% compounded semi-annually and Little Bank charges 5.0% compounded quarterly on its' loans. Which bank would you prefer to borrow from?

Select one:

a. impossible to decide.

b. Little bank

c. Neither

d. Big bank

Question 2).

The risk-free rate is 8% and the expected return on a market portfolio is 13%. If a share has a beta of 1.2, what is its expected return?

Select one:

a. 15.5%

b. 17%

c. 16.25%

d. 14%

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