Based on the below information, kindly answer the below questions Stock Beta B D 1 82 E 1 52 The Market Expected return and standard deviation are as per the below E(R M ) 7 and M 15 The Risk Free rate is equal to 2 25 Stock B has a standard deviation ( B ) equal to 48 The correlation between stock B returns and the market returns is equal to 0 58 What should be Stock B beta (2 pts) What should be Stock B expected rate of return (2 pts) Stock D sells for $80 today It will pay a dividend of $D 1 per share at the end of the year Investors expect the stock to sell for $85 at the end of the year What do investors expect the stock dividend to be by the end of the year (2 pts) A share of stock E sells for $70 today It will pay a dividend of $4 per share at the end of the year Investors expect the stock to sell for $S 1 at the end of the year What do investors expect the stock to sell for at the end of the year (2 pts) Suppose you want to form a zero market risk portfolio out of stock D and E What should be the weight you allocate to stock D and stock E to construct the zero market risk portfolio (4 pts)

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Question: Based on the below information, kindly answer the below questions: Stock Beta B ? D 1.82 E 1.52 The Market Expected return and standard deviation

Based on the below information, kindly answer the below questions:

The Market Expected return and standard deviation are as per the below:

E(R_M) = 7% and _M = 15%

The Risk-Free rate is equal to 2.25%

Stock B has a standard deviation (_B) equal to 48%.

The correlation between stock B returns and the market returns is equal to 0.58.
1. What should be Stock B beta? (2 pts)

Stock D sells for $80 today. It will pay a dividend of $D₁ per share at the end of the year. Investors expect the stock to sell for $85 at the end of the year. What do investors expect the stock dividend to be by the end of the year? (2 pts)

A share of stock E sells for $70 today. It will pay a dividend of $4 per share at the end of the year. Investors expect the stock to sell for $S₁ at the end of the year. What do investors expect the stock to sell for at the end of the year?

(2 pts)

Suppose you want to form a zero market-risk portfolio out of stock D and E. What should be the weight you allocate to stock D and stock E to construct the zero market-risk portfolio? (4 pts)

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**DATA IS PROVIDED ABOVE** C D 101 201 0.86% 102 0.35%. 1.25% 1.09. 202 -0.90% 103 203 0.83% 104 0.00% 204 -2.35% 105 0.49% 205 1.74% 106 1.04% 206 -0.40% -0.27% 207 0.82% 0.50% 208 -0.84% 1 Data for...