1. You are comparing two mutually exclusive projects. The crossover point is 12.3 percent. You have determined that you should accept project A if the required
return is 13.1 percent. This implies you should:
a. always accept project A.
b. be indifferent to the projects at any discount rate above 13.1 percent
c. always accept project A if the required return exceeds the crossover rate.
d. accept project B only when the required return is equal to the crossover rate
2. The expected rate of return on a stock portfolio is a weighted average where the weights are based on the: