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Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0 % rate of inflation in the future, (2) the

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Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0 % rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the inarket risk premium is 5.0%, (4) the firm has a beta of 2.30, and (5) its realized rate of return has averaged 15.0% over the last 5 years. Do not round your intermediate calculations. a. 16.28% b. 17.76% C. 18.87 % d. 20.91 % e. 18.50 % O O REQUIRED RATE OF RETURN Stock R has a beta of 1, Stock S has a beta of 0.7, the required return on an average stock is 11 %, and the risk-free rate of return is 3 %. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places. Mike Flannery holds the following portfolio: Stock Investment Beta $150,000 $10,000 $140,000 $75,000 $375,000 1.40 0.80 1.00 1.20 Total What is the portfolio's beta? Do not round your intermediate calculations. O a. 1.47 O b. 1.30 O c. 1.36 Od. 1.19 e. 1.45 ABCO Jim Angel holds a $200,000 portfolio consisting of the following stocks: Stock Investment $50,000 $50,000 $50,000 $50,000 $200,000 Beta A 1.20 0.80 1.00 B C D 1.20 Total What is the portfolio's beta? Do not round your intermediate calculations. a. 1.050 O b. 1.239 Oc. 0.809 d. 0.861 e. 1.040

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