questions 3 and 4

W 3 Question 3 (2 points) Your stock portfolio invested 20 percent in Stock Q. 40 percent in Stock S, and 40 percent in Stock T. The betas for these four stocks are 0.8.0.9, and1.8. respectively. What is your portfolio beta? 6 0.91 1.24 1.51 1.03 Question 4 (2 points) Minion, Inc., has no debt outstanding and a total market value of $200,000. Earnings before Interest and taxes are projected to be $20,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 10 percent higher. If there is a recession, then EBIT will be 10 percent lower. The company has 1,000 shares outstanding and an income tax rate of 20 percent. What is the estimated return on equity under the recession economic scenario