Riskfree rate 0.03

Market rate 0.11

You have three stocks in your portfolio: Applied Materials, Texas Instruments, and Qualcomm. Use their information in the chart below to answer the questions.

	AMAT	TXN	QCOM
Shares	25	12	18
Purchase Price	$20.47	$76.93	$45.34
Expected sales price	$35.00	$98.00	$55.00
Dividend	$0.80	$3.08	$2.48
Beta	1.25	1.10	1.35
Standard deviation	0.03	0 . 0 5	0.04

1. What is each stocks dividend yield?

2. What is each stocks capital gain return?

3. What is each stocks holding period return

4. Using the holding period returns and the data above, calculate your expected return on your portfolio.

5. What is each stocks required return?

6. Using the required returns as the means, what is virtually the entire range of returns for each stock?