20 Points 1. Both assets A and B plot on the SML. Asset A has an expected return of 16 % and a beta of 1.8. Asset B has an expected return of 13% and a beta of 1.2 . A. What is the slope of the security market line? B. What is the risk-free rate? 2. Ralph bought a share of stock for $31.50 that paid a dividend of $.85 and sold six months later for $27.65. A. What is his holding period return? B. What is his APR? C. What is his EAR. 3. In a stream of past dividends, the initial dividend is $0.75 and the most recent dividend is $1.25. The number of years between these two dividends (n) is 8 years. A. What is the annual growth rate during this eight-year period? B. What should the value of this dividend stream be if the rate of return is 10% ? 4. What is the required rate of return for Company X if their annual dividends are $0.75, their stock price is $112.25 their dividend growth rate is 5.5%