Thanks, that helped me lot For the question 1 i was just thinking about Average rate it pays investors. good... here couple others... if any body get chance... 1. which of the following is most correct? a. stand-alone projects with positive npv's should always be accepted. b. mutually exclusive projects with NPV's should always be accepted. c. Projects can be mutually exclusive even if they address totally different business issue. d. Both a and c are correct. e. ALL 2. A firm's cost of capital is: a. the cost of rising money to do a particular project b. the average return it pays it investors for the use of their money c. a cost a firm has to pay their shareholders. d. none 3. All other things being equal, what is the major impact that an increase in the expected inflation rate would be expected to have on the security market line? a. reduce its slope b. shift it down c. shift it up d.reduce required returns for investors in any individual asset