(beta of 0.6). You invested 65% of your funds in Delta Air Lines
and 35% of your funds in Amazon . What is the beta of the
portfolio?
0.90
1.15
0.98
1.25
An NPV profile plots a project’s NPV at various costs of
capital, labeled "A" and "B" in the graph. A project’s NPV profile
is shown as follows. Identify the range of costs (ranges labeled
"A" and "B") of capital that a firm would use to accept and reject
this project.
- A Portfolio Comprises Delta Air Lines Beta Of 1 6 And Amazon Beta Of 0 6 You Invested 65 Of Your Funds In Delta Ai 1 (14.04 KiB) Viewed 42 times
A: Reject, B: Accept
A:Accept, B: Accept
A: Accept, B: Reject
Free cash flows are actual cash flows available to firms after
the company has made all the investments in fixed assets and
working capital necessary to sustain ongoing operation.
True
False
NPV (Dollars) 400 300 200 A 100 B B -100 -200 0 2 4 6 8 10 12 14 16 18 20 COST OF CAPITAL (Percent)