9. Consider a stock with the following annual returns: 10%, 4%, 15%, -5%, 20%, -2%, 8%, -6%, 13%, and 23%. The minimum acceptable return is 9%. Calculate the Sortino ratio of the stock (6 points) 2 10. a. FI Corporation disappointed investors by cutting the annual expected ROE from 12% to 6% indefinitely. At the beginning of the year, the earnings per share were $8 and the firm reinvested in its projects $6 per share. If the risk free rate is 2%, the expected rate of return of the market portfolio is 8% and the beta of the stock is 1.33, calculate the current stock price using the DDM (8 points). b. Calculate the P/E ratio (3 points). c. Two years ago the P/E ratio was 11.78 with earnings of $4.5 per share. Calculate and explain the change in the growth opportunities of the firm (5 points)