Answer Happy

a 1. Long term gov't bonds are returning 4%. The equity risk premium is 5%. If XYZ stock has a beta of 0.6, what is its expected return?(Don't round intermediate calculations and give at least 4 significant digits in your answer) 2. Assume 20% of a portfolio in ABC, 60% in DEF, and 20% in GHI. ABC returned 10%, DEF returned 5%, and GHI returned 7%. What was the portfolio's return? (Give at least 4 significant digits in your answer) a 3. Stock A had a market value of $20, Stock B had a market value of $30. During the year, Stock A generated cash flow of $3 and Stock B generated cash flow of $4. The current market values are, Stock A is $22, and Stock B is $31. What is the rate of return on stock B? (Give at least 4 significant digits in your answer) 4. An investment has returned 5%, 3%, -4%, 6%, and -7% in each of the last five years, respectively. We have decided that we want to use historical returns as a proxy for expected future returns. What is the expected rate of return?