1. Stock D has a beta value of 3.4. It pays annual dividends, of $90, starting one year from today. If the risk-free return is currently .5%, and the equity risk premium is 6%, what is the present value of the stock?
a. 18,000
b. 441.17
c. 1,384.6
d. 430.6
e. 354.3
2. An investment portfolio has annual returns of 2%, 20%, -8%, -10%, and -1% over a five-year period. What is the geometric average return over this five-year period?
a. -.5%
b. 1.34%
c. .6%
d. 6%
e. 0%