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BF Ltd has just paid a dividend of $3 per share. If the dividends are expected to grow at a constant rate of 4% per

BF Ltd has just paid a dividend of $3 per share. If the dividends are expected to grow at a constant rate of 4% per year indefinitely, what will be the share price (to the nearest dollar) in 4 years- time, if investors require a return of 6%?

Group of answer choices

A. $182

B. $189

C. $135

D. $156

Currently, your portfolio consists of $3,000 invested in share A with a beta of 0.7 and $4,000 in share B with a beta of 0.5. You have another $12,000 to invest and want to divide it between share C with a beta of 1.3 and a risk-free asset. You want your portfolio beta to be 0.9. How much (to the nearest dollar) should you invest in the risk free asset?

Group of answer choices

A. $10,000

B. $ 2,000

C. $8,800

D. $3,000

Consider the following information about a share portfolio :

State of Economy

Probability of State of Economy

Portfolio Return if the State Occurs

Boom

0.6

15%

Bust

0.4

4%

What is the portfolio risk ?

A. 2.9%

B. 4.62%

C. 3.27%

D. 5.39%

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