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1 - You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $ 2 . 2 5 a

1- You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.25 a share at the end of the year (D1= $2.25) and has a beta of 0.9. The risk-free rate is 3.2%, and the market risk premium is 5.0%. Justus currently sells for $34.00 a share, and its dividend is expected to grow at some constant rate, g. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is,P3 what is ?) Round your answer to two decimal places. Do not round your intermediate calculations.
$ ___________
2-a. Stock X has a 9.5% expected return, a beta coefficient of 0.8, and a 30% standard deviation of expected returns. Stock Y has a 12.0% expected return, a beta coefficient of 1.1, and a 20.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below
Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations.
CVx = fill in the blank _____
CVy = fill in the blank ______
b. Calculate the required return of a portfolio that has $9,500 invested in Stock X and $6,000 invested in Stock Y. Do not round intermediate calculations. Round your answer to two decimal places.
rp = fill in the blank _______%

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