I just need the second part of the question answered, the beta in the first part was 0.54

7. (15 points) State of the world Probability Is this distribution symmetrical? Calculate the covariance. Calculate the variance of the portfolio made up of 30% X and 70% of the Market. Find the Beta for the firm. Find the correlation coefficient. What does beta measure? Boom Normal Recession Security Security Returns X Returns Market .25 .15 07 10 .03 .OS ER: 112 E/ R.10 o-008436 .-0015 .30 .40 .30 (15 points) Assuming the beta cakulated above, and assuming E(RM) - 12%; Re-8% Find the price of a stock that paid a dividend of $3.00. Assume that the stock will grow at 4% for the next 5 years. Thereafter the grow rate is expected to be a negative 3%