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1. You are valuing an investment that will pay you $6,000 the first year, $8,000 the...

1. You are valuing an investment that will pay you $6,000 the first year, $8,000 the second year, $11,000 the third year, $13,000 the fourth year, $17,000 the fifth year, and $23,000 the sixth year (all payments are at the end of each year). What is the value of the investment to you now if the appropriate annual discount rate is 8.00%?

2. You are considering buying a stock with a beta of 3.10. If the risk-free rate of return is 6.0%, and the expected return for the market is 10.0%, what should the expected rate of return be for this stock?
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