What is the market risk premium of a stock which has a beta of 1.45, the risk free rate is 1.75% and an expected return of 12.20%.

a.7.21%

b.7.01%

c.8.29%

d.9.00%

e.10.17%

A share of common stock just paid a dividend of $2.25. If the growth rate for this stock is 4.4%, and if investors' required rate of return is 10.25%, then what is the stock price?

a.$36.51

b.$42.34

c.$16.47

d.$21.96

e.$40.15

Eric Lawson has $80,000 invested in a 2-stock portfolio. $30,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.80 and Y's beta is 0.80. What is the portfolio's beta?

a.1.063

b.1.961

c.1.775

d.0.727

e.1.175