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A) What is the Expected Return for a security with a Beta of 1.25? B) If a mutual fund manager also has a portfolio with

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A) What is the Expected Return for a security with a Beta of 1.25?

B) If a mutual fund manager also has a portfolio with a Beta of 1.25, and expects his portfolio to earn a rate of return of 11 percent, is it a good idea to invest?

C) If you had a stock with a Beta of 1.5 and it paid you a $3 in dividends, and you expected the price to be $81 in a year, what would you pay for the stock today?

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