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1. Outline Stutzer's approach to determine the optimal asset allocation in an investment portfolio.

2. Calculate the cost of common equity. Assume that the expected return on a market portfolio is 11?%, the? company's beta is 2.04 and the? risk-free rate is 5?%.

3. Raj receives a check for $100 from Sheldon. He signs the back of the check and turns it over to Leo to pay off the $100 he owed to Leo. The check is now said to be.

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