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19. Stock A has an expected return of 10%and a standard deviation of 20% Stock...

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19. Stock A has an expected return of 10%and a standard deviation of 20% Stock B has an expected return of 13% and a standard deviation of 30%. The risk-free rate is S% and the market risk premium (r-ro) is 6%. Assume that the market is in equilibrium. Portfolio AB has 50% invested in Stock A and 50% invested in Stock B. The returns of Stock A and Stock B are independent of one another, Le, the correlation coefficient between them is zero. (A) What is the beta of Stock A? (B) What is the beta of Stock B?0 (c) what is the expected beta of the Portfolio AB? (D) what is the expected return of the Portfolio AB? 20, Ford Motor's last dividend was $1.25The dividend growth rate is expected to be constant at 15% for 3 years, after which dividends are expected to grow at a rate of 6% forever. Ifthe firm's required return (r) is 11%, what is its current stock price? (Sp)

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