What price would you pay today for a stock if you require a rate of return of 15%, the dividend growth rate is 3.40%, and the firm recently paid an annual dividend of $1.70 ?

Multiple Choice

• $15.15

• $18.04

• $27.55

• $14.66

  Your portfolio has a beta of 1.2. The risk-free rate is 5%, and the market portfolio return is 15%. What happens to your portfolio's expected return if the portfolio's beta increases to 1.8, risk-free rate increases to 6%, but the market portfolio return decreases to 10%.

  Multiple Choice

• It increases from 23% to 24%.

• It increases from 13.2% to 17%.

• It decreases from 24% to 23%.

• It decreases from 17% to 13.2%.