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1) Portfolio as follows Stock 1) Own 25,000 and Beta = 1.1 Stock 2) Own 35,000 and Beta = 0.75 Stock 3) Own 40,000 and

1) Portfolio as follows

Stock 1) Own 25,000 and Beta = 1.1

Stock 2) Own 35,000 and Beta = 0.75

Stock 3) Own 40,000 and Beta = 0

What is the portfolio beta = to ?

2) Common stock just paid dividend of $1.50. Rate of return is 12% and the constant growth rate is 7%. What is price of stock?

3) Share of common stock will pay a dividend of $3.00 in next year. Stock price is currently $30 and the constant growth rate is 5%, then what is Rs?

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