Exhibit 7.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROB…

Exhibit 7.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)   You expect the risk-free rate (RFR) to be 3 percent and the market return to be 8 percent. You also have the following information about three stocks.   ​ ​ Current Expected Expected Stock Beta Price Price Dividend X 1.25 $20 $23 $1.25 Y 1.50 $27 $29 $0.25 Z 0.90 $35 $38 $1.00     Refer to Exhibit 7.2. What are the expected (required) rates of return for the three stocks (in the order X, Y, Z)?

Exhibit 18.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PRO…

Exhibit 18.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)   The portfolios identified below are being considered for investment. Assume that during the period under consideration, Rf = .04.   Portfolio Return Beta s W 0.18 1.8 0.06 X 0.21 0.9 0.10 Y 0.13 0.7 0.03 Z 0.16 1.5 0.07    Refer to Exhibit 18.2. According to the Treynor Measure, which portfolio performed best?