his rate of return under these conditions?Dan has a portfolio of three assets. Find the expected rate of return for the portfolio assuming he invests 50 percent of its money in asset A with 10 percent rate of return, 30 percent in asset B with a rate of return of 20 percent, and the rest in asset C with 30 percent rate of return.CAPMWhat is beta? The market beta is 1. What does it mean if your stock has a beta greater than 1?Dane 's stock is currently selling for $160.00 per share and the firm's dividends are expected to grow at 5 percent indefinitely. In addition, Dane 's most recent dividend was $5.50. The expectedrisk free rate of return is 3 percent, the expected market return is 8 percent, and Dane has a beta of 1.20.(a)What is the expected return based on the dividend valuation model?(b) What is the required return based on the CAPM? r = R

(c)Would Dane be a good investment at this time? Dan wants to determine the required return on a stock portfolio with a beta coefficient of 0.5. Assuming the risk-free rate of 6 percent and the market return of 12 percent, compute the required rate of return using the CAPM model.Assuming a risk-free rate of 8 percent and a market return of 12 percent, would a wise investor acquire a security with a beta of 1.5 and a rate of return of 14 percent given the facts above?

Chapter 9What are the advantages/disadvantages to using debt?What are the advantages/disadvantages of using equity?

over the past five years are as follows:The cost of this new issue of common stock is ________.Given that the cost of common stock is 18 percent, dividends are $1.50 per share and the price ofthe stock is $12.50 per share, what is the annual growth rate of dividends?

Chapter 10