Detta borrows 20,000 from the bank. For a five-year loan, the ...

[armygirl]

Detta borrows 20,000 from the bank. For a five-year loan, the bank requires annual end-of-year payments of 4,878.05. The annual interest rate on the loan is ________.
 
  A) 6 percent
  B) 7 percent
  C) 8 percent
  D) 9 percent

Question 2

Asset P has a beta of 0.9. The risk-free rate of return is 8 percent, while the return on the market portfolio of assets is 14 percent. The asset's required rate of return is ________.
 
  A) 13.4 percent
  B) 22.0 percent
  C) 15.4 percent
  D) 6.0 percent

[ASDFGJLO]

Answer to Question 1

B

Answer to Question 2

A

[armygirl]

TYSM

[T4T]

Excellent