II. Calculation: 1. There are three A) What is the expected return and standard deviation of stock A, B, and C. ( 6 points) B) What is the correlation of AB and BC, and AC. ( 3 points) C) Order your priority for the Portfolios. ( 1 points) 2. Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 25% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g=0. The company's last dividend, D0, was $1.25, its beta is 1.20 , the market risk premium is 5.50%, and the riskfree rate is 3.00%. A) What is the required return? ( 2 points) B) What is the predicted Dividend (Ds) at the end of year 5 ? ( 2 points) C) What is the horizon value (Terminal value) at the end of year 5? (3 points) D) What is the current price of the common stock? ( 3 points) 3. C C-mad.ina twin mutuallu exelusive nrniects and Cash flows are expected as below (WACC 8% ): A) What are the NPV and IRR of two projects based on Replacement chain approach? B) What are the annual payments (PMT) of two projects based on Equivalent annual annuity approach? C) Which project should be accepted