You have a portfolio that consists of 2000 stocks of XYZ, 1000 stocks of ABC and 100 corporate bonds. XYZ has just paid a dividend of $10 and it is estimated that it will continue to do so in perpetuity. It has a required return of 7%. ABC has just paid a dividend of $5 which you envisage will grow at 10% for 2 years and then 2% in perpetuity. It has a required return of 5%. Your corporate bonds pay 5% coupons semi-annually and currently have a yield of 10%. They will mature in 10 years.