1. You just borrowed $300,000 and the annual interest rate on the loan is 4.5%. Assume you plan to repay the loan with 9 annual payments of equal amounts. What is your annual payment amount? 

2. Stock A has an expected return of 11%. Stock B has an expected return of 17%. The beta for stock A is .6 and the beta for stock B is 1.3. If a portfolio of these two stocks has an expected return of 14.75%, what is the portfolio weight of Stock B?

Answer rating: 100% (QA)

SOLUTION 1 To calculate the annual payment amount for the loan we can use the formula for the presen... View the full answer