The single index model holds

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1. Suppose you held a well-diversified portfolio with a very large number of securities, and that the single index model holds. If the ? of your portfolio was 0.20 and ?M was 0.16, what is the ? of the portfolio?

2. A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 8.2%. What is the stock's current price? a. $32.61 b. $27.39 c. $38.80 d. $27.07 e. $29.02

Reference no: EM132018609

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