QUESTION 3 Jefferson's recently paid an annual dividend of $5 per share. The dividend is expected to decrease by 1% each year. How much should you pay for this stock today if your required return is 16% (in $ dollars)? $_ QUESTION 4 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 1.31 and the beta of the portfolio is 0.92, what does the beta of stock B have to be? QUESTION 5 QUESTION 1 "When the overall market experiences a decline of 8%, investors with portfolios of aggressive stocks will probably experience portfolio: " O losses of less than 8%. losses greater than 8%. gains of less than 8%. O gains greater than 8%. QUESTION 2 A stock is expected to return 10% in a normal economy, 12% if the economy booms, and lose 4% if the economy moves into a recessionary period. Economists predict a 70% chance of a normal economy, a 12% chance of a boom, and a 18% chance of a recession. The expected return on the stock is %