An investor may choose an investment with greater risk if her reward to risk tradeoff is unfavorable. True False You buy a stock that just paid $4 annual dividend. You expect it to grow each year at a constant annual rate of 5%. The required rate of return is 14%. To the nearest penny, you should pay $44.40. True False Asset A has a beta of 1.7. The expected return on the market portfolio is 12% and the t-bill rate is 7%. What is the required rate of return using the equation for the SML as given by the CAPM? 16.1% 17.3% 16.8% 15.5% You have three stocks in your portfolio. These stocks and their betas and weights are: stock A with a beta of 0.7 and a weight of 20%, stock B with a beta of 1.3 and a weight of 50%, and stock C with a beta of 1.6 and a weight of 30%. What is the beta for your portfolio? less than 1.25 1.25 greater than 1.27 1.27