1. A stock has a required return of 11.2%, the risk-free rate is 4.2%, and the market risk premium is 4.2%. What is the stock’s beta? You must show your work to receive full credit.
2. If you placed $1 in to an account that paid interest at a rate of 5% and compounded the interest monthly. how much would that account worth in 300 years.
3. James and susan wish to have $10,000 available for their wedding in 4 years. how much should they set aside now at 6% compounded monthly in order to reach their financial goal.