Assume that the market is in equilibrium this means the


1. You are the Financial Manager of Linkedin Inc. You wish to maintain a growth rate of 12% per year and a debt-equity ratio of .30. Profit Margin is 5.9%, and the ratio of Total Assets to Sales is constant at .85. Is this growth rate possible?

2. Portfolio AB has 50% invested in Stock A and 50% invested in Stock B. Stock A has an expected return of 10% and a standard deviation of 20%. Stock B has an expected return of 13% and a standard deviation of 30%. The risk-free rate is 5% and the market risk premium (MRP), is 6%. Assume that the market is in equilibrium (This means the required return equals the expected return.) What is the Beta of Portfolio AB? 1.15 1.08 1.21 1.25

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Financial Management: Assume that the market is in equilibrium this means the
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