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1) A portfolio is invested 10 percent in Stock G, 50 percent in Stock J, and 40 percent in Stock K. The expected returns on

1) A portfolio is invested 10 percent in Stock G, 50 percent in Stock J, and 40 percent in Stock K. The expected returns on these stocks are 7 percent, 13 percent, and 15 percent, respectively. What is the portfolio's expected return? (Round your answer to 2 decimal places. (e.g., 32.16))

2)

You own a stock portfolio invested 40 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 10 percent in Stock T. The betas for these four stocks are 0.78, 1.16, 1.17, and 1.34, respectively. What is the portfolio beta? (Round your answer to 2 decimal places. (e.g., 32.16))

3) You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.23 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? (Round your answer to 2 decimal places. (e.g., 32.16))

4) A stock has an expected return of 15.5 percent, its beta is 1.65, and the expected return on the market is 12.6 percent. What must the risk-free rate be? (Round your answer to 2 decimal places. (e.g., 32.16))

5) Sixx AM Manufacturing has a target debt?equity ratio of 0.55. Its cost of equity is 15 percent, and its cost of debt is 7 percent. If the tax rate is 35 percent, what is the companys WACC? (Round your answer to 2 decimal places. (e.g., 32.16))

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