1. Which of the following increases taxes in the year of the transaction? 1. contributions to a Traditional IRA 2. contributions to a Roth 401(k) plan 3. distributions from a Roth IRA 4. distributions from a Traditional 401(k) plan AI and 2 B. I only C. I and 4 D. 2 and 4 E 4 only 2. Cavani's stock has a beta of 1.30, and its required return is 12.00%. Rashford's stock beta is 0.50. If the risk-free rate is 4.75%, what is the required rate of return on Rashford's stock? A. 7.53 percent B. 8.18 percent C. 8.38 percent D.921 percent E. 10.32 percent 3. Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT? Price Expected growth Expected return A $25 79 10% B $40 9% 12% A. The two stocks should have the same expected dividend. B. The two stocks could not be in equilibrium with the numbers given in the question C. A's expected dividend is $0.50. D. B's expected dividend is $0.75. E. A's expected dividend is $0.75 and B's expected dividend is $1.20. 4. What is the expected return on the portfolio if it holds 12,500 shares of stock C, 12.000 shares of stock A, and 10,000 shares of Stock D? Possible stocks in the portfolio are the following: Stock Expected Return Stock Price 15% $25 B 10 $18 22 $40 D 14 $20 A. 15.90 percent B. 16.75 percent C. 17.00 percent D. 18.30 percent E. 20.50 percent