1 In order to fund her retirement,
# 1 In order to fund her retirement, Michele requires a portfolio
with an expected return of 0.10 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock 3. If Stocks 1 and 2 have expected returns of 0.10 and 0.08 per year, respectively, then what is the minimum expected annual return for Stock 3 that will enable Michele to achieve her investment requirement?
#2 Lee purchased a stock one year ago for $24. The stock is now worth $30, and the total return to Lee for owning the stock was 0.35. What is the dollar amount of dividends that he received for owning the stock during the year?
#3 The beta of M Simon Inc., stock is 1.8, whereas the risk-free rate of return is 0.06. If the expected return on the market is 0.14, then what is the expected return on M Simon Inc?
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