Question: I don't understand this question, it should be able to see the formulas in the bar at the top of the excel file spreadsheet. 1)Using

I don't understand this question, it should be able to see the formulas in the "bar" at the top of the excel file spreadsheet.

1)Using CAPM, calculate the following Reasonable Rate of Return for Company QWE, whose Beta is .88.The Risk-free rate of return is 0.75% and Market-rate is 4.75%.

2)What is a portfolio's beta with the following:

StockStock WeightBeta

Apple38%1.50

Target15%1.44

Disney27%1.15

Walmart20%1.20

3)What is a portfolio's beta with the following:

StockStock WeightBeta

Samsung20%1.09

CVS15%0.97

Walgreens31%0.32

Amazon19%1.27

Sony5%0.86

JetBlue10%-0.21

4)What is Holding-period return?

5)Calculate the holding period returns for periods 2 - 4 for both Jazman & Solomon as a percent.

Period Jazman Solomon

1 $9 $27

2 $11 $28

3 $10 $32

4 $13 $29

6)What would the present value be of $3,000 to be received 12 years from now discounted back at 8%?

7)You are offered $1,000 today, $10,000 in 12 years, or $25,000 in 25 years. Assuming that you can earn 11 percent on your money, which offer should you choose?

8)Selma and Patty are saving for retirement in two different ways.Who will save more money for retirement at the end? Show your work.They will both receive 8% annual return on their investment over the next 35 years.Selma invests $2,000 at the end of each year only for first 10 years of the 35 year period - for a total of $20,000 saved.Patty doesn't start saving for 7 years and then saves $2,000 per year at the end of each year for 28 years -for a total of $56,000 saved.

9)You invested $100,000 5 years ago at 7.5% annual interest rate. If you invest an additional $1,500 a year, at the beginning of each year for 20 years at the same 7.5% annual rate, how much will you have 20 years from now?

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