1.Manchester plc is expected to pay annual dividends of 1.50, 1.75 and 2.00 per share at the end of each of the next three years (i.e., from t=1 to t=3). After year 3, annual dividends are expected to grow at a rate of 2% forever. Assuming that shareholders of Manchester plc. require a rate of return equal to 4% per year, what is the fair value for the share of Manchester plc.?

63.48

64.70

97.37

95.52

2.

You have invested only in the BlueChip Fund, a mutual fund that invests mainly in stocks. At the moment, the BlueChip Fund has an expected return of 24% and a volatility of 32%. Your broker suggests you to consider adding the Platinum Fund to your current portfolio. The Platinum Fund has an expected return of 20%, a volatility of 35%, and a correlation of -0.10 with the BlueChip Fund. Risk-free interest rate is equal to 5%. The difference between the expected return and the required return on the Platinum Fund is closest to:

0.074

0.306

0.109

0.171

3.

Consider the following stock prices and shares outstanding data:

Assuming that you are interested in creating a value-weighted portfolio of these four stocks, then the percentage amount that you would invest in Intel is closest to:

		16.04%
		18.01%
		9.01%
		42.39%

Stock Name Intel Apple Amazon Google Price per Share ($) 56.51 255.82 1791.44 1273.74 Shares Outstanding (Billions) 4.35 4.52 0.4958 0.3435