What is the return for stock d

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Reference no: EM13842178

QUESTION 1

You have invested $40,134 portfolio in three securities. The three securities comprise of the risk-free asset, Stock A, and Stock B. The beta of stock A is 2.1 while the beta of stock B is 0.7. 10% of the portfolio is invested in the risk-free security. What is the dollar amount invested in stock B if the beta of the portfolio is 1.2?

QUESTION 2

You have a $59,342 portfolio that consists of $12,800 invested in Stock A, $13,698 invested in Stock B, $1,277 invested in Stock C, and the remainder in Stock D. The portfolio has a return of 19.8 percent. The return for Stock A is 6.5 percent, for Stock B is 33.2 percent, and for Stock C is 7.2 percent. What is the return for Stock D?

QUESTION 3

Based on the following cash flows, calculate the payback period.

Year            CF     
0                -$168
1                 $36
2                 $27
3                 $20
4                 $303

Enter your answer rounded off to two decimal points.

QUESTION 4

What is the modified internal rate of return (MIRR) of this project? Assume that the required rate is 12%

Year                  CF     
0                 -$5,500
1                   $   450
2                   $1,800
3                   $3,200
4                   $   550
5                   $2,130

Reference no: EM13842178

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