15. The company is paying a dividend of $2 per share every year and its stock price is $40. What is discount rate? A. 3% B. 5% C. 8% D. 10% 16. The company is paying a dividend of $2 per share now and the growth rate of the dividend is 3%. The stock price is $40. What is discount rate? A. 3% B. 5% C.8% D. 10% 17. The investor is presented with the two following stocks: Stock A 30% 1 Stock B 40% 60% Expected Return Standard Deviation 50% Assume that the correlation coefficient between the stocks is zero. What is the expected return on the portfolio that invests 30% in stock A? A.20% B.37% C.40% D.45% atv 21 9. prode 18. The investor is presented with the two following stocks: Expected Return Standard Deviation Stock A 30% 50% Stock B 40% 60% Assume that the correlation coefficient between the stocks is zero. What is the standard deviation of the retum on the portfolio that invests 30% in stock A? A.19.89% B.39.36% C.44.60% D.15.49% 19. The investor is presented with the two following stocks: Expected Return Standard Deviation Stock A 30% 50% Stock B 40% 60% Assume that the correlation coefficient between the stocks is one. What is the standard deviation of the return on the portfolio that invests 30% in stock A? * 21 V