You currenly own a portfolio valued at $56,000

1. You currenly own a portfolio valued at $56,000 that has a beta of 1.25. You have another $10,000 to invest and would like to invest it in a manner such that the portfolio beta decreases to 1.20. What does the beta of the new investment have to be?

A. 0.74

B. 0.79

C. 0.86

D 0.92

E 1.00

 

2. Western Beef stock has a price of $62.10 a share. The company pays a constant annual dividend of $4.40 per share. What is the total return of this stock?

A. 6.62

B. 6.81

C 7.09

D 7.49

E 7.82

 

3. A stock produced returns of 16 percent, 9 percent, and 21 percent over three of the past four years. The arithmetic average for the past four years is 10 percent. What is the standard deviation of the stock’s returns for the 4 year period?

A 6.82

B 8.54

C 9.09

D 10.83

E 11.75

 

Please show work if you can, thank you!