Help Center Question 6 Needs Grading Explain what is the criterion used by a rational investor for choosing a financial investment in terms of its risk-return combination Question 7 O out of 3 points Calculate the current price of stock A in 3 years from today, given that the stock just paid a dividend of 2.2 USD per share, which is expected to grow steadily by 0.04 percent for ever, while the market requires a return of 0.1 percent for the stock. Give your answer in 0.000. The formula is Pn - Dn+1/(r-g) Question 8 3 out of 3 points Stock A experiences non-constant growth for the first 3 years and subsequently it experiences constant growth. The issuer of stock A just paid a dividend of USD 3.1 per share. The growth rate of dividend during the first 3 years of supernormal growth is expected to be 0.09. From the beginning of year 4, the growth rate of dividend is expected to stabilize at 0.09 for ever. The market requires a return of 0.14 for stock A. Calculate the price of stock A today. Give an answer of 0.000. The formulae are P-01/(1+r) + D2(1+r)2 + D3/1+73+ De/l-gX1+r33 and D-(+)*Dn+1 Question 9 3 out of 3 points Suppose the historical returns R, of a financial investment for each of the past 7 years are 19 --4.3. 12---3.5.13--9.8. 14--5.2.15--4.7. [6--7.9.17 -0.1, respectively. Calculate the average Investment return, RoR, during the 7-year period. The formula is RoR - ER/. Give you answer in 0.000