has a stock beta of 1.75 and Shakur Inc. has a stock beta of 3.10. fyou pat 2S .noney in Biggie and 75% in Shakur, what will be the beta of your portfolio? a) 2.76 b)1.95 c) 1.77 d) 2.13 e) 3.25 9) Serenity Parts is considering a new project. They believe that the project has a beta of 2.50. The T-bill rate is1.0% (risk-free rate) and the S&P 500 return (which represents 12.5%, what is the appropriate return on the new project? a) 24.30% b) 21.50% c) 26.45% d) 29.75% e) 23.50% "marker) is 10) Jaynestown Corp is currently priced at 25.00 per share. They just paid their annual dividend of$1.24. They have been experiencing growth in dividends of2.5% and expect this to continue. What is the firm's cost of equity? a) 4,00% b) 7.58% c) 9,06% d) 10.02% e) 12.40% Stock A has a beta of 11) The expected market rate of return is 14%, and the risk free rate is 4% 1.2. If the stock is currently priced to yield a return of 15% (expected return, then: a) The stock is overpriced b) The stock is underpriced c) The stock lies on the SML d) The stock lies above the SML e) The stock is fairly priced