The market price of a security is S90. Its expected rate of return is 12%. The risk-free rate is 6%, what will the market price of the security be if its beta doubles (and all other variables remain unchanged)? Assume the stock is expected to pay a constant dividend in perpetuity. a. 180 b. 120 c. 60 d. 45 e. none of the above Use the following information for the next three questions: A pension fund manager is considering two mutual funds: a stock fund, and a bond fund. The probability distribution of the risky funds is: Stock fund Bond fund Expected return 20% Standard deviation 50% 10% | 8% The correlation between the fund returns is 0 23, What's the expected return of a portfolio with 40% invested in stock fund and the rest in bond fund? A)8% B) 12.8% C) 14% D) 24% 24. You want to construct a portfolio using the two funds that gives a target return of 14%. What's the standard deviation of such portfolio? A) 12% B)1790 C) 18% D) 26% E) 37% 25. If the risk free rate is 1%, the maximum Sharpe ratio that an investor can achieve is ? (pick the closest answer) A) 0.4 B) 0.6 C) 0.7 D) 0.8 E) 0.9