 Portfolio required return Assume you're the money manager of $4 million investment fund. The fund consists of four stocks with following investments and betas:
Stock

Investment

Beta

A

400000

1.5

B

600000

0.5

C

1000000

1.25

D

2000000

0.75

If the market's required rate of return is 14% and the riskfree rate is 6%, Determine the fund's required rate of return?
2. DPS Calculation Warr Corporation just paid the dividend of $1.50 share (that is, D_{o} = $1.50). The dividend is expected to grow 7% a year for the next three years and then at five percent a year thereafter. What is the expected dividend per share for each of next five years?