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1 3. Calculate the portfolio return, and beta for the following portfolio. Year B C D E F G H Weight 0.11 0.06 0.07 0.15

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1 3. Calculate the portfolio return, and beta for the following portfolio. Year B C D E F G H Weight 0.11 0.06 0.07 0.15 0.04 0.09 0.06 0.05 0.37 Return 5.3% 14.6% 17.9% 17% 3.5% 18.7% 3.9% 1% 16.7% Beta 1.5087 2.5937 -0.705 2.6444 2.1354 0.5311 1.6835 0.1817 2.7944 4. Calculate the NPV, IRR, NPV profile, payback period (fractional and annual), and discounted payback period (fractional and annual) for the following cash flow with the company plans to fund the project with the new issuance of stock. Its stock price is below Year 0 1 2 3 4 5 6 8 CF -68 2 11 54 7 18 -15 - 16 49 Year Price 1999 23.99 2000 27.92 2001 32.67 2002 34.42 2003 33.71 2004 21.32 2005 23.85 2006 24.56 2007 29.91

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