You are making a $120,000 investment and feel that a 10 percent rate of return is reasonable given the nature of the risks involved. you feel you will receive $48,000 in the first year, $54,000 in the second year, and $56,000 in the third year. you expect to pay out $12,000 as an additional investment in the fourth year. what is the net present value of this investment given your expectations

Stock a has a beta of 1.2 and a standard deviation of 20%. stock b has a beta of 0.8 and a standard deviation of 25%. portfolio p has $200,000 consisting of $100,000 invested in stock a and $100,000 in stock b. which of the following statements is correct? (assume that the stocks are in equilibrium.) (a) stock b has a higher required rate of return than stock a. (b) portfolio p has a standard deviation of 22.5%. (c) portfolio p has a beta equal to 1.0. (d) more information is needed to determine the portfolio's beta. (e) stock a's returns are less highly correlated with the returns on most other stocks than are b's returns.