UPS, a delivery services company, has a beta of 1.6, and Wal-Mart has a beta of 0.5 The risk-free rate of interest is 4% and the market risk premium is 8%. What is the expected return on a portfolio with 40% of its money in UPS and the balance in Wal-Mart? Valorous Corporation will pay a dividend of $1.85 per share at this year's end and a dividend of $2.30 per share at the end of next year. It is expected that the price of Valorous' stock will be $45 per share after two years. If Valorous has an equity cost of capital of 9%, what is the maximum price that a prudent investor would be willing to pay for a share of Valorous stock today?