If a share of stock provided a 14.84% nominal rate of return over the previous year while the real rate of return was 6.65%, then as per Fisher's equation, the inflation rate was: a. 8.89%. b. 7.68%. c. 8.03%. d. 9.12%. What is the percentage return on a stock that was purchased for $48.40, paid a $1.67 dividend, and was then sold after one year for $46.20? a. -2.50% b. -1.10% c. 0.23% d. -0.33% If an investor's portfolio is allocated 75% to the market portfolio and 25% to Treasury bills, then the investor should expect to receive: a. the risk-free rate plus 75% of the expected return on the market. b, the risk-free rate plus 75% of the expected market risk premium. 75% of the expected return on the market. d, 25% of the risk-free rate plus 75% of the expected market risk premium. If the company cost of capital is 20% and a proposed project's cost of capital is 15%, then discounting the projects' cash flows at 20% would: a. determine where the project plots in relation to the security market line. b. make the project look more attractive than it should be. c. be correct from a theoretical perspective. d. be incorrect and could cause the project to be erroneously rejected If the portfolio beta increases from 1.0 to 1.5, the risk-free rate decreases from 5 to 496, and the market risk premium increases from 8 to 9%, which of the following could be true statement about an expected portfolio return? a. It increases from 12 to 14.0%. b. It increases from 13 to 17.5%. c. It increases from 12 to 12.5%. d. It increases from 13 to 13.5%. 10