1. A stock is currently selling for $75 per share. It will pay a dividend of $8 per share at year end. The stock has a beta of 1.1. The risk-free rate is 5% and the expected return on the market is 18%. What should investors expect the share price of the stock to be at the end of the year?

2. Investment advisor X had a return last year of 20% and a beta of 1.5. Investment advisor Y had a return of 16% and a beta of 0.9. The risk-free rate during the year was 4% and the market return was 18%. Which advisor had the best risk-adjusted performance?