c oroporate finance

above 20) An investor has $200.000 and invested half of it in a portfolio consist of four stocks ABC D. he invested $35.000 in A. $40.000 in B. $16,000 in C and the remaining in D. A is an average stock has a beta 1 and required return for 15%, however the required return of the portfolio is 13.55%, while treasury bills in the market has a return 6%. If Stock B has a beta 0.85, Stock C has a beta 1.45. How much you approximately expect the beta of stock D. choose the closest choice OA) 2.765 OB)-1.952 OC)-0.923 O D) 10.755 OE) None of the above 19) Kamila is forming a portfolio by investing $50,000 in stock A that has a beta of 1.50, and $25,000 in stock B that has a beta of 0.90. The return on the market is equal to 6% and the required rate of return on the investor's portfolio is 6.6%. Then how much is the treasury bill return in this market? OA) 4% OB) 4.5% C) 5.5% OD) 6% OE) None of the above 201 An investor has $200,000 and invested half of it in a portfolio consist of four 18. Suppose you hold a portfolio consisting of a $85,000 investment equally in each of 10 different common stocks. The portfolio's beta is 1.55. Now suppose you decided to sell one of your stocks that has a beta of 0.85 and to use the proceeds to buy a replacement stock with a beta of 2.65. Knowing that the treasury return in the market is 4.8% including an inflation premium for 3.55%, and the market risk premium is 6.4%, then by how much would the return of the portfolio change? choose the nearest choice OA) 14.7% OB) 1.15% O c) 2.2% OD) 19.423 O E) None of the above 17. London's stock has a required return of 14%, and the stock sells for $55 per share. The firm just paid a dividend of $1.5, and the dividend is expected to grow by 20% per year for the next 4 years. After t = 4, the dividend is expected to grow at a constant rate of X% per year forever. What is the stock's expected constant growth rate after t = 4, ie, what is X? choose the closest choice OA) 9.8% O B) 6% O C) 4.3% OD) 39 O E) None of the above