2 Determine the portfolio total dollar amount and the percentage weights: in that portfolio of the following Show your work Stock Number of shares $/Shail Adobe Systems $4.00 BNYC 0,5mn $20.00 GE 5 mn $10.00 Royal Dutch Shell 2mn $25.00 2.5 mn 3 If a stock has a beta of 0.8, does that mean it will earn a return 20% less than the stock market return? Show your work. 4 A stock has a current price of $96.40, and is expected to pay a dividend next year of $1.60. Market professionals expect the stock to have a 5% growth rate. What is its required return? Show your work. 5 Compute the expected return on the following investment Probability, % 40 State Recession Boom Normal recovery Return, % -10% 15% 4 25 25 Show your work 6 You have an existing portfolio with a beta of 1.5 You add a new investment, with a beta of 1.0 Assuming the existing portfolio becomes 80% of the entire portfolio, what will be the beta of the new portfolio