1. Your portfolio includes $3,637 invested in stock A, $2,532 invested in stock B, and...
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1. Your portfolio includes $3,637 invested in stock A, $2,532 invested in stock B, and $2,419 invested in stock C. The beta of stock A is 0.7, the beta of stock B is 1.4, and the beta of stock C is 1.5. What is your portfolio beta? Give your answer rounded to two decimal places.
2. The expected return of a stock is 16 percent, the expected return of the market portfolio is 9 percent, and the risk-free rate is 2 percent. What is the stock's beta? Give your answer rounded to two decimal places.
3. A project has the following cash flows: -855 in year 0, 2,552 in year 1, 1,006 in year 2, and 1,011 in year 3. What is the net present value (NPV) of the project if the required return is 7 percent? Answer to the nearest cent and do not include the $ sign. For example, if the price is $100.25, you should enter 100.25 as the answer.
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