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PART B: Total pts =80. Show your calculations to get full credit. 1. [15 pts] Given the following information ahnaw ......... You create a portfolio

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PART B: Total pts =80. Show your calculations to get full credit. 1. [15 pts] Given the following information ahnaw ......... You create a portfolio by buying 10 shares of stock A and 20 shares of stock B. a. What is the market value of your portfolio? b. What is the expected return of the portfolio (in percent)? c. What is the expected return of the portfolio (in dollars)? 2. [15 pts] Home Depot just paid a cash dividend of $7.60 per share. The dividends ha 11.8 percent per year recently. They are expected to grow at the same rate indefin current price of the stock is $284 per share. The risk-free rate is 3.5 percent, and the market risk premium is 6.0 percent. The s 0.96. a. Calculate the cost of equity using the Dividend Growth Model. b. Calculate the cost of equity using SLM. c. Explain, in your own judgment, what is the source of the major discrepanc estimates of (a) and (b)

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