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Can i have answer and solution for these question please ? 18) The risk - free rate of interest is 3% and the market risk

Can i have answer and solution for these question please ?

18) The risk - free rate of interest is 3% and the market risk premium is 5%. Howard Corpo ration has a beta of 2.0, and last year generated a return of 8 % with a standard deviation of returns of 27%. The required return on Howard Corporation stock is

A) 13 %.

B) 24%.

C) 35 %.

D) 4 2%.

19) If you hold a portfolio made up of the following stocks:

Investment Value Beta

Stock X $4,000 1.5

Stock Y $5,000 1.0

Stock Z $1,000 0.5

What is the beta of the portfolio?

A) 1.33

B) 1.24

C) 1.15

D) 1.00

20) An investor currently holds the following portfolio:

Amount Inves ted

8,000 shares of Stock A $16,000 Beta = 1.3

15,000 shares of Stock B $48,000 Beta = 1.8

25,000 shares of Stock C $96,000 Beta = 2.2

If the risk - free rate of return is 2% and the market risk premium is 7%, then the required return on the portfolio is

A ) 14.91%

B) 15.93%

C) 21.91%

D) 23.93%

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