1. What type of performance measurement might be use to evaluate a school district?
2. The real risk-free rate is 3.5%. Inflation is expected to be 2.3% this year, 4.2% next year, and 3.4% thereafter. The maturity risk premium is estimated to be 0.05 × (t - 1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note? Do not round your intermediate calculations. Round your answer to two decimal places.
3. Calculate the beta of a firm's equity if the asset beta is 1.1, the debt beta is .05, and the firm has 30 percent debt in the capital structure.