1. Ryan pays back a loan of X in one lump sum at the end of 20 years. Doing so means be pays 800 more in interest than if he had used equal annual payments for 10 years. The effective annual interest rate is 7%. Find X.
2. Portfolio Beta You own $17,000 of City Steel stock that has a beta of 3.27. You also own $36,000 of Rent-N-Co (beta = 1.72) and $20,200 of Lincoln Corporation (beta = -.88). What is the beta of your portfolio?