1. A portfolio contains two stocks. Stock A comprises 65% of the portfolio and has a beta of 1.31. The remainder is invested in Stock B, which has a beta of 0.98. What is the portfolio beta?
2. The Western State Company's common stock is expected to pay a $2.00 dividend in the coming year. If investors require a 17% return and the growth rate in dividends is expected to be 8%, what is the market price of the stock be?
3. The process of purchasing newly issued shares from a company and reselling those shares to the general public by an investment bank is called.