A portfolio consists of the following 2 stocks Market risk premium is 5% and the risk free rate is 6%. What is the required return on the portfolio? a. 13.7% b. 12.3% c. 14.1% d. 11.7% e. 13.2% Tapley Dental Associates is considering a project that has the following cash now data. What is the project's payback? a. 2.11 years b. 2.50 years c. 3.71 years d. 3.05 years e. 3.21 years Suppose you hold a diversified portfolio consisting of a $200,000 invested equally in each of 25 different common stocks. The portfolio's beta is 1.0. Now suppose you decided to sell one of your stocks that has a beta of 1.35 and to use the proceeds to buy a replacement stock with a beta of 1.25. What would the portfolio's new beta be? a. 0.996 b. 1.004 c. 1.115 d. 1.013 e. 0.988