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An analyst gathered the following information for a stock and market parameters: stock beta = 1.260; expected return on the Market = 10.00%; expected return

An analyst gathered the following information for a stock and market parameters: stock beta = 1.260; expected return on the Market = 10.00%; expected return on T-bills = 1.90%; current stock Price = $6.94; expected stock price in one year = $12.84; expected dividend payment next year = $3.00. Calculate the

a) Required return for this stock

b) Expected return for this stock

The market risk premium for next period is 7.40% and the risk-free rate is 1.20%. Stock Z has a beta of 1.122 and an expected return of 14.60%. What is the:

a) Market's reward-to-risk ratio?

b) Stock Z's reward-to-risk ratio

You are invested 28.70% in growth stocks with a beta of 1.501, 24.50% in value stocks with a beta of 0.587, and 46.80% in the market portfolio.What is the beta of your portfolio?

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