1. (5%) Dais Co. plans to purchase a new machine for $800,000 with 10%, 5-year loan. Assume the installment payment would be made immediately. What is the annual payment? PVIF 10% =0.621, PVIFA10%,5 = 3.791 2. (10%) An investment portfolio includes stock P and Q. The relevant figures are: Stock % of portfolio Beta Expected return standard deviation 60% 1.2 30% 10% Q 40% 0.8 15% 8% 1) Which stock is riskier in terms of stand-alone risk? 2) What is the expected return of the portfolio? 3) What is the 3 of the portfolio