1. Suppose the risk free return is 6% and the return market is 12%. The...

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Finance

1. Suppose the risk free return is 6% and the return market is 12%. The beta of a managed portfolio is 1.5 and the average returnnis 18%. accoridng to the CAPM, alpha of the managed portfolio is:
6%,5%,4%, 3%, none of the above
2. Your company just paid a divedend of $2 per share. The growth rate of the dividend is expected to be constant at 10%. The required return in 15%. what is your firms stock currently worth?
$14.67,$40, $20, $13.33, $44

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