Portfolio Management HW # 1 1 QUESTION 1 1. You've noticed that the retum on large cap stocks decreased from 1/1/2016 to 1/1/2017. If the market is in equilibrium, how would this affect your required rate of return for large cap stocks today (8/22/2018)? Your required rate of return would increase. Your required rate of retum would decrease. Your required rate of return will be unaffected. Cannot be determined. 6.25 points QUESTION 2 1. Alpha Tech's common stock had the following HPY's over the last five years: 25. - 08, 10. - 15. 28. What is the geometric mean return? 0831 le 1693 066 08 6.25 points