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10. You are considering an investment in Tata's stock, which is expected to pay a dividend of $2.00 a share at the end of the year (D1 = $2.00) and has a beta of 0.9. The risk-free rate is 5.6%, and the market risk premium is 6%. Tata currently sells for $25.00 a share, and its dividend is expected to grow at some constant rate g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? * a) $32.32 b) $78.00 c) $27.32 d) $0 e) None of the above 11. Shahhi has $100,000 invested in a 2- stock portfolio. $45,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta? * a) 0.65 b) 1.06 c) 0.80 d) 1.49 e) None of the above 12. Nardy Company's stock has a beta of 1.10, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is the firm's required rate of return? * a) 10.46% b) 11.65% c) 10.30% d) 12.25% e) None of the above 13. Lynkx Inc's stock has an expected return of 13.50%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 5.00%, what is the market risk premium? * a) 5.80% b) 5.95% c) 6.80% d) 6.25% e) None of the above 14. Shanz Enterprises has a beta of 1.28, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the market risk premium is 4.70%. What is Kollo's required rate of return? * a) 11.016% b) 9.670% c) 9.920% d) 10.170% e) None of the above