Currently the risk-free return is 3 percent and the market return, T. is expected to be 12 percent. What is the required rate of return on the following two-stock portfolio? Amount Invested $105,000 45,000 Beta 1.8 0.8 O 22.5% O 16.5% 21.0% O 14.7% O 18.0% Best Bargains (BB) has been growing at the same rate, 5 percent, for the past 10 years, and it is expected the company will continue to grow at this rate for the remainder of its life. BB paid a dividend equal to $1.40 a few days ago. If investors require a 12 percent rate of return to purchase BB stock, what is its market value? O $11.67 O $20.00 $21.00 O $29.40 $28.00 The interest rate (yield) on 2-year Treasury bonds (T-bonds) is 0.8 percent, the rate on 3- year T-bonds is 1.0.percent, and the rate on 4-year T-bonds is 1.5 percent. Based on the expectations theory, what is the expected one-year interest rate in Year 3? 3.0% O 1.5% O 1.4% O 1.0% O 1.1%