1. Using the following set of information, calculate the rate of return required by the shareholders of the company. You must use the Capital Asset Pricing Model (CAPM) method.

A: current BETA of the company: 1.2

B: current yield rate of 10-Year Treasury Bond: 2.5%

C: Normal risk premium (Rm Rf): 6.0%

Round your answer to the first decimal. However, please Do NOT put "%" in your answer. (For example, if your answer is 15.0%, provide only "15.0" for your answer.)

2. During the past several years, we experienced significant turmoil of our financial market. Dow Jones Industrial Average index (DJIA), for example, has shown its records on a roller coaster as follows:

Date DJIA (imaginary index; these are not true at all)

1. Oct. 12, 2015 11,000

2. Oct. 10, 2016 11,100

3. Oct. 16, 2017 13,300

4. Oct. 14, 2018 15,000

5. Oct. 07, 2019 16,500

6. Oct. 03, 2020 26,500

You made an investment of $20,000 into the DJIA on October 12, 2015. You had been keeping it all without any changes. How much was it worth on Oct. 03, 2020? Round your answer to the nearest dollar. Do not include "$" or "," in your answer. If your answer is $10,000; then just put 10000.

3. Please keep using the same information (that was provided in the previous question) to answer the question below.

Date DJIA (imaginary index)

1. Oct. 12, 2015 11,000

2. Oct. 10, 2016 11,100

3. Oct. 16, 2017 13,300

4. Oct. 14, 2018 15,000

5. Oct. 07, 2019 16,500

6. Oct. 03, 2020 26,500

On Oct. 16, 2017, you invested additional $10,000 into the DJIA thinking that it would rise higher. How much was the additional (=new) investment worth on Oct. 3, 2020? Round your answer to the nearest dollar. Again, please do not put "$" or "," in your answer. Just the number is required. If your answer is $15,000; then just put 15000 for your answer