1. You own a stock portfolio invested 15% in Stock Q, 35% in Stock R, 20% in Stock S, and 30% in Stock T. The betas for these four stocks are 0.5, 1.2, 1.5, and 2, respectively. What is the beta of this portfolio?

1.10

1.20

1.30

1.40

1.50

2. When using discounted dividend method to estimate stock price, which of the following should be used as the discount rate?

Risk free rate

Required return of debt

Required return of the equity

WACC

Bank deposit rate