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10. XYZ stock is expected to pay a dividend of $1.5 at the end of the year. 5 points The required rate of return is
10. XYZ stock is expected to pay a dividend of $1.5 at the end of the year. 5 points The required rate of return is rs = 10%, and the expected constant growth rate is g= 7%. What is the stock's current price? 0 a) $50 O b) $45 O c) $36 d) $50.5 O e) None of the above 5 points 11. XYZ 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 O b) 1.02 c) 1.046 d) 1.46 e) None of the above 12. Suppose you held a diversified portfolio consisting of 10 different common stocks, investing $500 in each stock. The portfolio's beta is 1.9. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 0.8 for $500 and use the proceeds to buy another stock with a beta of 1.25. What would your portfolio's new beta be? a) 3.865 O b) 1.074 c) 2.025 O 042 e) None of the above
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