Below are three stocks with their expected returns and betas…

Below are three stocks with their expected returns and betas.  T-bills yield 4%. Stock E(r) Beta X .08 1 Y .12 2 Z .14 3 Does this data suggest an arbitrage opportunity?  If so, devise a strategy to exploit this opportunity and be detailed about how and why this strategy could deliver arbitrage profits. (7 points)

You must analyze the forecasted risk and cash flows of a pro…

You must analyze the forecasted risk and cash flows of a project at your firm to determine if it is a smart investment.  The cost of the project is $120 million today.  The forecasted cash flows at the end of each of the next 6 years are $30 million.  The project’s beta is 1.8.  Assume the risk-free rate is 3% and the expected return on the market is 13%.  a)  What is the net present value of the project? (5 points) b)  You recognize that your forecast of project beta could be in error, so you perform some additional analysis.  Determine how high the beta could be and still generate a zero NPV.  (5 points)

Describe what happens to the average kinetic energy of ideal…

Describe what happens to the average kinetic energy of ideal gas molecules when the conditions are changed as follows.  If the kinetic energy remains the same it will be marked with an S, if the kinetic energy increases it will be marked by an I and if the kinetic energy decreases it will be marked by a D.  Choose the correct grouping. (a) The pressure of the gas is increased by reducing the volume at constant temperature.(b) The pressure of the gas is increased by increasing the temperature at constant volume.(c) The average velocity of the molecules is increased by a factor of 2.

C12H22O11(aq)+H2O⟶YeastEnzymes4C2H5OH(aq)+4CO2(g)   In the m…

C12H22O11(aq)+H2O⟶YeastEnzymes4C2H5OH(aq)+4CO2(g)   In the making of beer, yeast converts the sugar maltose to ethanol and carbon dioxide during anaerobic fermentation as depicted in the simple chemical equation below:   Maltose + water → ethanol + carbon dioxide   If 342.3 g of maltose and 18.0 g of water are fully converted to ethanol and 176.0 g of carbon dioxide, what mass of ethanol is produced?