1. What does beta measure? How do you calculate beta? Search for a company on the Web that your interested in and find what there beta is. Let the class know what company and what there beta means?
2. Explain what the risk/return trade off is and how it relates to investments and these risks.
3. Heliocorpular Magnetics is currently valued at 40 per share. They are expected to pay a 3.20 dividend, because the dividend has been growing at 5% per year for the past 8 years. Find the dividend yield, the capital gains yield and the expected return for this stock.