1. Suppose the risk free return is 6% and the return market is 12%. The beta of a managed portfolio is 1.5 and the average returnnis 18%. accoridng to the CAPM, alpha of the managed portfolio is:

6%,5%,4%, 3%, none of the above

2. Your company just paid a divedend of $2 per share. The growth rate of the dividend is expected to be constant at 10%. The required return in 15%. what is your firms stock currently worth?

$14.67,$40, $20, $13.33, $44