1. You are managing a fund with an expected rate of return of 11% and a standard deviation of 27%. The T-bill rate is 3%. Your client chooses to invest 80% of his portfolio in your fund and the rest in a T-bill money market fund. What is the expected return of your client's portfolio? Enter your answer as a decimal number, rounded to three decimal places.
2. Waller Co. paid a $0.146 dividend per share in 2000, which grew to $0.312 in 2012. This growth is expected to continue.
What is the value of this stock at the beginning of 2013 when the required return is 14.6 percent? (Round the growth rate, g, to 4 decimal places. Round your final answer to 2 decimal places.)