48 . Fed discount rate = 4 % U . S . Treasury Bond rate = 2 % Inflation rate = 1 % which one of the following is most likely the nominal risk-free rate of return in the U . S .?
49 . Assume the following values for an investment : Risk-free rate of return = 2 % Expected rate of return = 9 % Beta = 1.4 which one of the following is the required rate of return for the investment ?
50 . Which one of the following is not an element in the capital asset pricing model formula ?
51 . A graph that plots beta would show the relationship between
52 . Which one of the following is not a factor routinely considered in valuing a stock option ?
53 . Charles Allen was granted options to buy 100 shares of Dean Company stock . The options expire in one year and have an exercise price of $ 60.00 per share . An analysis determines that the stock has an 80 % probability of selling for $ 72.50 at the end of the one-year option period and a 20 % probability of selling for $ 65.00 at the end of the year . Dean Company ' s cost of funds is 10 %. Which one of the following is most likely the current value of the 100 stock options ?
54 . Which one of the following is not a limitation of the basic Black- Scholes option pricing model ?
55 . Which one of the following characteristics is not an advantage of the Black-Scholes option pricing model ?
56 . Which one of the following options , A through D , is most likely to have the greatest value ( all other things being equal )?
57 . Assume the following abbreviated Income Statement : In a common-size income statement , which one of the following percentages would be shown for Finance Expense ?