For GAP Inc.

5 The previous close is The market cap is The beta is What is the most recent yield on the 10 -year Bond from http://www.ustreas.gov/offices/domestic-finance/debt-management/interest-rate/yield .shtml What is the expected return on each stock according to CAPM? Please include your formula so that I can follow your analysis (not just a number). Recall that the Expected Return =Rf+ Beta x Expected Market Risk Premium. For expected market risk premium use 5.7%. For Rf use the most recent yield on the 10 -year Bond as you collected above from http://www.ustreas.gov/offices/domestic-finance/debt-management/interest-rate/yield .shtml Assume you invested equal amounts of money in each stock, i.e., 1/3 in each stock. 10 Calculate the expected return of this portfolio? Please include your formula so that I can follow your analysis (not just a number). Suppose that you allocated 50% of your funds into the first stock and split the remaining 50% equally between the other two stocks, each receiving 25%. Calculate the expected 11 return of this portfolio? Please include your formula so that I can follow your analysis (not just a number). Assume you invested equal amounts of money in each stock, i.e., 1/3 in each stock. 12 Calculate the beta of this portfolio. Please include your formula so that I can follow your analysis (not just a number)