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Huang Company's last dividend (D0) was $3.00. The company has a beta of 1.2. The risk-free rate is 4% and the market risk premium (MRP)

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Huang Company's last dividend (D0) was $3.00. The company has a beta of 1.2. The risk-free rate is 4% and the market risk premium (MRP) is 8%. Dividends are expected to grow in the future as shown below: Use the above information to answer 20-21. 20. What is its current stock price (P0) ? Assume market equilibrium. 21. What is the expected stock price one year from today (P1) ? Assume market equilibrium. 22. The probability distribution of rates of retum for two stocks, A&B, is shown below: If you invest 70% of your money on stock A and 30% on stock B and construct a portfolio, what will be the standard deviation of portfolio returns

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