Question: 1. O'Brien has a 2-stock portfolio with a total value of $100,000. $55,000 is invested in Stock A with a beta of 0.75 and the

1. O'Brien has a 2-stock portfolio with a total value of $100,000. $55,000 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.79. What is his portfolio bets ? DO not round your immediate calculation. ROund your final answer to 2 decimal place

2. Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D₁ = $0.67; P₀ = $32.50; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?

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