15. If you hold a portfolio made up of the following stocks: Stock A Stock B Stock C Investment amount (RM) 2,000 5.000 3,000 Beta 1.5 12 0.80 What is the beta of the portfolio? A. 1.32 B. 1.17 C. 1.14 D. Cannot be determined from information given 16. If we are able to be fully diversify. what is the appropriate measure of risk to use? A. The beta B. The standard deviation C. The expected rate of return D. None of the above answer 17. Given the inflation rate of 2.1% in year 2019, 3.6% in 2020, and 3.7% in 2021. And the real risk-free rate of 2.7%, find the nominal rate of interest in year 2020. A. 9.40% B. 5.83% C. 5.55% D. 3.13% 18. Given the inflation rate of 2.1% in year 2019, 3.6% in 2020, and 3.7% in 2021. And the real risk-free rate of 2.7%, find the inflation premium in year 2021. A. 9.40% B. 5.83% C. 5.55% D. 3.13% 19. Merah Red Berhad (MRB) common stock has a beta of 1.2. If the expected risk-free return is 4% and the market offers a risk premium of 7% over the risk-free rate, what is the expected return on MRB's common stock? A. 3.6% B. 7.6% C. 8.4% D. 12.4% 20. Ungu Purple Berhad (UPB) paid last year dividend of RM2.25 on its common stock. The company's dividend are expected to grow at a constant rate of 2.5% indefinitely. If the required rate of return on this stock is 14.5%, compute the value of UPB's common stock today. A. RM 18.75 B. RM 19.22 C. RM 21.55 D. RM 23.75