Cash flows are is follows: Because Frank only has enough savings for one investment, his broker has proposed the third alternative to be, according to his expertise, "the best in town." However, Frank questions his broker and wants to calculate the present value of each investment. Assuming a 9*% discount rate, what is Frank's best alternative? You are considering a security with the fallowing possible rates of return: a. Calculate the expected rate of return. b. Calculate the standard deviation of the returns. GAT, Inc. has issued a $1,000 par 5% annual coupon bond that Is to mature in 10 years. If your required rate of return is 4%, what price would you be willing to pay for the bond? The expected return for the market portfolio is 65%, the expected return on U.S. Treasury bills is 2%, and the expected return on AAA-rated short-term corporate bonds is 5%. Calculate the required return for a stock with a beta equal to .9