Equally weighted portfolio of these three stocks

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1. What is the expected return on an equally weighted portfolio of these three stocks?

2. Weisbro and Sons common stock sells for $21 a share and pays an annual dividend that increases by 5.4 percent annually. The market rate of return on this stock is 9.40 percent. What is the amount of the last dividend paid by Weisbro and Sons?

3. An investment offers a 10.5 percent total return over the coming year. Bill Bernanke thinks the total real return on this investment will be only 5.0 percent. What does Bill believe the inflation rate will be over the next year?

Reference no: EM132036924

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