1. If the stock market went up 10% today what would be the impact on stock A with a beta of 1.1 and stock B with a beta of .65?
2. The signal company has operating income of $600,000. The company's depreciation expense is $100,000 and it has a 40% tax rate. If the company is 100% equity financed, calculate its net income and cash flow.
3. You have a portfolio with a beta of 1.08. What will be the new portfolio if you keep 88 percent of your money in the old portfolio and 12 percent in a stock with a beta of 0.51? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)