7) stock that just paid a dividend (D0) of BD 4.00 per share with dividends growing at a constant 5% per year. If the required return is 9%, what is the value of the stock?

a-100

b-80

c-67

8)

Stock	Cost	Beta	Yearly Income	Value Today
A	100	1.2	40	120
B	150	0.8	30	165
C	120	1.5	20	130

Using the data above, what is the rate of return for Stock A?

a-60%

b-50%

c-40%

9)

Probability	Asset A (%)	Asset B (%)
Good	0.45	8.00	15.00
Moderate	0.30	4.00	8.00
Poor	0.25	1.50	-5.00

Using the data above, compute for the standard deviation of Asset B

a-12.35

b-8.02

c-9.11

10)

Stock	Cost	Beta	Yearly Income	Value Today
A	100	1.2	40	120
B	150	0.8	30	165
C	120	1.5	20	130

Using the data above, compute for the portfolio's beta

a-1.13

b-1.78

c-2.89

11)

Stock	Cost	Beta	Yearly Income	Value Today
A	100	1.2	40	120
B	150	0.8	30	165
C	120	1.5	20	130

Using the data above, calculate the portfolio's total return

a-38.12%

b-37.11%

c-34.55%