12. Which portfolio would you invest in using the Jensen's Alpha? a. Portfolio M because it has a Jensen, Alpha of 11.10% b. Portfolio N because it has a Jensen's Alpha of 9.7% c. Portfolio M because it has a Jensen's Alpha of 7.7% d. Portfolio N because it has a Jensen's Alpha of 11.10% 13. Use the following information to answer questions 13-16. A stock is currently selling for S40. The expected growth rate for the stock is 4%; The return on the market is 8%; The earnings for the firm is $3 per share; The beta for the stock is 1.1. The P/E for the Industry is 12; The dividend that was just paid is $1.25. The risk-free rate is 2.5%, what is the firm's required return? a. 6.05% b. 19.8% c. 8.56% 14. What is the value of the stock using the dividend discount model (also known as the Gordon Growth Model)? a. $28.51 b. $27.41 c. $32.50 d. $22.34