Sorenstam Corp has an equity multiplier of 2.34 times, total assets of $4,512,895, a ROE of 17.5 percent, and a total assets turnover of 3.1 times. Calculate the firm's ROA.

John is president and sole shareholder of Photo Inc. Photo Inc., wishes to borrow money, but to

do so, the bank requires John to orally guarantee to repay the loan if Photo Inc., cannot. John's guaranty to repay is: A) Enforceable, because the main purpose of the loan and the guarantee was to benefit John. B) Enforceable, because in general, guaranty contracts do not need to be in writing. C) Unenforceable, because in general, guaranty contracts need to be in writing. D) Unenforceable, because John did not sign any agreement.

What is the Beta for a security whose returns do not vary across states of nature (a risk-free security)?

A) 0 B) Between 0 and 1 C) 1 D) > 1 E) < 0