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Q13) The market risk premium for next period is 7.09% and the risk-free rate is...

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Q13) The market risk premium for next period is 7.09% and the risk-free rate is 2.09%. Stock Z has a beta of 1.393 and an expected retum of 12.71%. Compute the following: a) Market's reward-to-risk ratio : (0.75 points) b) Stock Zs reward-to-risk ratio : (0.75 points) Q14) An analyst gathered the following information for a stock and market parameters stock beta - 1.020; expected return on the Market -10.30%; expected return on T-bill: 3.80%; current stock Price - $7.78; expected stock price in one year - $11.87; expected dividend payment next year - $4.30. Calculate the a) Required return for this stock (1.25 points): b) Expected return for this stock (1.25 points): Q15) The market risk premium for next period is 7.10% and the risk free raiT 1.90%. Stock Z has a beta of 0.609 and an expected return of 13.20%. What is the: a) Market's reward-to-risk ratio? (1 point): b) Stock Zs reward to risk ratio (1 point): Q16) You are invested 31.20% in growth stocks with a beta of 1.807.16.80% in value stocks with a beta of0.901, and 52.00% in the market portfolio. What is the beta of your portfolio? (1 point)

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