What type of return does this particular investment

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1. Six-month treasuries are priced at 0.30% currently. You’re analyzing a stock that has a Beta of 1.50, and your required market portfolio return is 9.00%. What type of return does this particular investment need to generate in order for you to consider putting it in your investment portfolio?

2. Jackson Inc. is expected to pay a $2.25 per share dividend at the end of the year. The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock is 14%. What is the stock’s current value per share?

3. An investment has a stated rate of 6%. However, you notice it pays interest monthly. What is the effective annual rate?

Reference no: EM131992530

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