If the covariance of a stock is 17.13 percentage squared, the variance of the stock is 32.39 percentage squared and the variance of the market is 27.37 percentage squared, what is the beta of the stock? (20pts)

If the correlation coefficient of the stock with the market is -0.58 and the standard deviation of that stock is 5.30% and the standard deviation of the market is 5.23%, what is the beta of the stock? (20pts)

If the covariance of the stock with the market is 27.20 percentage squared and the standard deviation of that stock is 5.69% and the standard deviation of the market is 5.23%, how much do the stocks variance explained by the market (Hint: What is )? (20pts)

Assume that the stock of XYZ has a beta of 1.5, the current risk free rate is 4% and the annualized market premium is 8%. Further assume that next year dividend is expected to be $0.4 per share and its perpetual growth rate is 5%. According to the CAPM, what should be the price of the stock. (20pts)

R2