What is the economic value added

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Problem 1: The annual returns for 3 years share B were 0%, 10%, and 26%. Annual returns for 3 years for the market portfolio were 6%, 18% and 24%. Calculate the beta for the share?

A. 0.75

B. 0.84

C. 1.36

D. 1.00

E. 0.74

Problem 2: Pickering Inc. has an average investment of $100,000 during the year. During the same period, Pickering Inc. generates an after-tax income of $16,000. If the cost of capital is 15%, what is the Economic Value Added?

A. $15,000

B. $1,000

C. ($1,000)

D. $16,000

E. ($16,000)

Reference no: EM132828433

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