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5. Trump invested $60,000 in a 2-stock portfolio. He invested $45,000 in Stock A, and the rest in Stock B. As beta is 1.60 a

om the Internet can contain viruses. Unless you need to edit, its safer to stay in Protected View Enable Editing 6. Assuming

hi can you please answer 5 and 6. thanks for your help

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Answer #1

3 2*3 Asset Stock A Stock B Beta Investment Weight Portfolio Beta 1.60 45000.00 0.7500 1.200 0.70 15000.00 0.2500 0.175 60000

DO*(1+g) = 2*(1+0.11) = 2.22 Share Price Next Year dividend/(Cost of Equity-Growth rate) 2.22/(0.15-0.11) $ 55.50 Answer A

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