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Q10) There is a 20.70% probability of an average economy and a 79.30% probability of an above average economy. You invest 20.57% of your money

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Q10) There is a 20.70% probability of an average economy and a 79.30% probability of an above average economy. You invest 20.57% of your money in Stock S and 79.43% of your money in Stock T. In an average economy the expected returns for Stock Sand Stock Tare 11.47% and 6.28%, respectively. In an above average economy the the expected returns for Stock S and Tare 11.79% and 12.15%, respectively. What is the expected retum for this two stock portfolio? (2.0 points) Q11) You are invested 10.29% in growth stocks with a beta of 1.983. 25.64% in value stocks with a beta of 1.088 and 64.07% in the market portfolio. What is the beta of your portfolio? (1.0 points) Q12) An analyst gathered the following information for a stock and market parameters: stock beta = 1.061 ; expected retum on the Market = 11.66%; expected retum on T-bills = 1.64%; current stock Price = $8.74 : expected stock price in one year - $12.96: expected dividend payment next year - $1.65 . Calculate the required retum and expected return for this stock. a) Required Retum : (1.0 points) b) Expected Retur : (1.0 points) Q13) The market risk premium for next period is 8.02% and the risk-free rate is 1.56%. Stock Z has a beta of 1.043 and an expected return of 11.42%. Compute the following: a) Market's reward-to-risk ratio: (0.75 points) b) Stock Z's reward-to-risk ratio : (0.75 points) 014) An analyst gathered the following information for a stock and market parameters: stock beta = 1.490; expected return on the Market = 10.10%; expected return on T-bills - 1.20%; current stock Price - $7.79, expected stock price in one year = $10.70: expected dividend payment next year = $1.41. Calculate the a) Required return for this stock (1.25 points) b) Expected return for this stock (1.25 points)

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