Question
1). Paccar's current stock price is $117.86 and it is likely to pay a $2.88 dividend next year. Since analysts estimate Paccar will have an
1). Paccar's current stock price is $117.86 and it is likely to pay a $2.88 dividend next year. Since analysts estimate Paccar will have an 4.3 percent growth rate, what is its required return?(Round your answer to 2 decimal places.)
2).Year-to-date, Oracle had earned a 1.41 percent return. During the same time period, Valero Energy earned 7.71 percent and McDonald's earned 0.46 percent.
If you have a portfolio made up of 25 percent Oracle, 20 percent Valero Energy, and 55 percent McDonald's, what is your portfolio return?(Round your answer to 2 decimal places.)
3). You have a portfolio with a beta of 1.90. What will be the new portfolio beta if you keep 88 percent of your money in the old portfolio and 12 percent in a stock with a beta of 0.95?(Do not round intermediate calculation and round your answer to 2 decimal places.)
4). An investor owns $7,500 of Adobe Systems stock, $8,500 of Dow Chemical, and $8,500 of Office Depot.What are the portfolio weights of each stock?(Round your answers to 4 decimal places.
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