10. TAJ Broker offers to sell you an annuity that pays $10,000 at the end of each year for 30 years. You could earn 5% on your money in other investments with equal risk. What is the most you should pay for the annuity? * a. $150,753.0 b. $153,724.5 O c. $156,236.2 d. $159,195.5 O e. None of the above 11. A stock is expected to pay a dividend of $1.5 at the end of the year. The required rate of return is rs = 10%, and the expected constant growth rate is g = 7%. What is the stock's current price? * O a) $50 O b) $45 c) $36 d) $50.5 e) None of the above 12. You are considering an investment in XERT's stock, which is expected to pay a dividend of $2.00 a share at the end of the year (D1 = $2.00) and has a beta of 0.9. The risk-free rate is 5.6%, and the market risk premium is 6%. XERT currently sells for $25.00 a share, and its dividend is expected to grow at some constant rate g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? * O a) $32.32 O b) $78.00 c) $27.32 d) $0 e) None of the above 13. SWERA Fund has $150,000 invested in a 2-stock portfolio. $65,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta? * a) 1.2 b) 1.02 c) 1.046 d) 1.46 e) None of the above 14. Assume that the risk-free rate is 5% and the expected return on the market is 12%. What is the required rate of return on stock with a beta of 0.8? * a) 10.6% b) 14.6% O c) 12% d) 9.6% O e) None of the above