An investor can eliminate virtually all diversifiable risk if he or she holds a very large, well-diversified portfolio of stocks A portfolio that consists of all stocks in the market would have a required return that is equal to the risk free rate QUESTION 31 A company just paid a 54 dividend. The dividend is expected to grow at 25% over the next year. 20% over the second year, and then grow at a constant 3 per year into the future. Assume the required return on the stock is 10%. Calculate the values listed below and round final answers to two decimal places. Dont round intermediate calculations. Dividend at end of year 1 (D1% 5 Dividend at end of year 2 (D2: 5 Dividend at end of year 3 (D3):$ Expected price of stock at end of year 21P215 Expected price of stock today (Poj: S QUESTION 32 The Nanted Corporation just purchased an expensive piece of equipment. Assume that the firm planned to depreciate the equipment over 3 years on straight-line basis, but Congress then passed a provision that requires the company to depreciate the equipment on a stracht-line basis of years O