QUESTION 1 Long Life Floors is expected to pay an annual dividend of $8 a share and plans on increasing future dividends by 4 percent annually. The discount rate is 16 percent. What will the value of this stock be 5 years from today (in $ dollars)? $ QUESTION 2 Over the past 3 years an investment returned 0.15,-0.11, and 0.07. What is the variance of returns? QUESTION 3 You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stock A is 1.46 and the beta of the portfolio is 0.93, what does the beta of stock B have to be? QUESTION 4 How much less is a perpetuity of $2,000 worth than an annuity due of the same amount for 30 payments (in $ dollars)? Assume an interest rate of 10%. $