1) Assume that the risk-free rate is 6.5% and the required return on the market is 8%. What is the required rate of return on a stock with a beta of 1.8? Round your answer to two decimal places.

2) You have been managing a $5 million portfolio that has a beta of 0.85 and a required rate of return of 10%. The current risk-free rate is 6.00%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.45, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places.

3) Holtzman Clothiers's stock currently sells for $19 a share. It just paid a dividend of $1.5 a share (i.e., D0 = $1.5). The dividend is expected to grow at a constant rate of 9% a year.

What stock price is expected 1 year from now? Round your answer to two decimal places.

$

What is the required rate of return? Round your answer to two decimal places. Do not round your intermediate calculations.

%

Please show all work and explain the answers