All returns are annual returns unless otherwise indicated. $1.$ What is the expected return on Asset A if it has a beta of $1\mathrm{.}40,$ the expected market return is $12$ percent, and the risk free rate is $5$ percent? $2.$ The expected return on Stock Q is $14$ percent, the market risk premium is $6$ percent, and the risk free rate is $5$ percent. Calculate the beta of Stock $\backslash ($ Q $\backslash ).3.$ Assume that you have a portfolio consisting of the following stocks. Compute the expected return on the portfolio. $4.$ You invest $\backslash (\backslash$$ $200,000\backslash )$ in Stock X$,\backslash (\backslash$$ $300,000\backslash )$ in Stock $\backslash ($ Y $\backslash ),$ and $\backslash (\backslash$$ $500,000\backslash )$ in Stock $\backslash ($ Z $\backslash ).$ a$)$ The betas for Stocks $\backslash (\backslash$mathrm$\{$X$\},\backslash$mathrm$\{$Y$\}\backslash ),$ and Z are $\backslash (0\mathrm{.}90,1\mathrm{.}20\backslash ),$ and $1\mathrm{.}70,$ respectively. Find the beta of the portfolio. b$)$ The risk free rate of return is $5$ percent and the return on the market portfolio is $11$ percent. Find the expected return on the portfolio according to the Capital Asset Pricing Model $($CAPM$)?5.$ A firm just paid an annual dividend of $\backslash (\backslash$$ $2\backslash )$ per share. This dividend is expected to grow at a rate of $5$ percent per year forever. If the current market price for a share of the company's stock is $\backslash (\backslash$$ $50\backslash ),$ find the cost of equity $($or required return on equity.$)6.$ Treasury bills currently have a return of $5$ percent and the return on the $\backslash ($ S $\backslash$& P $500\backslash )$ is $12$ percent. If a company has a beta of $1\mathrm{.}50,$ what is its required return on equity $($or cost of equity$)?7.$ Suppose a firm's capital structure consists of debt and common equity. The firm has a cost of equity of $15$ percent and a pre$-$tax cost of debt of $8$ percent. If the target debt$/$equity ratio is $0\mathrm{.}60($or $60$ percent$),$ and the tax rate is $25$ percent, what is the firm's weighted average cost of capital $($WACC or $\backslash ($ R$\_\{\backslash$text $\{$WACC $\}\}\backslash ))?$