Lab Finance Solutions 7-13 Explain the linkages among financial decisions, return, risk, and stock value. 7-14 Assuming that all other variables remain unchanged, what effect would each of the following have on stock price? (a) The firm's risk premium increases. (b) The firm's required return decreases. (c) The dividend expected next year decreases. (d) The growth rate of dividends is expected to increase.

which one is correct please confirm? QUESTION 25 The constant growth valuation model approach to calculating the cost of equity assumes that ____.   a. earnings, dividends, and stock price will grow at a constant rate   b. the growth rate is greater than or equal to ke   c. earnings and dividends grow at a constant rate, but stock price growth is indeterminate   d. dividends are constant

6) An investor holds a portfolio of stocks and is considering investing in the DBB Company. The firm's prospects look neutral, and you estimate the following probability distribution of possible returns: Conditions Recession P Returns on DBB Returns on DVI 0.12 -33% -12% Below Average 0.15 -18% 7% Average 0.46 12% 11% Above Average 0.15 25% 23% Boom 0.12 37% 25% a) How much is the expected return for DBB? b) How much is the coefficient of variation for DBB? c) Now let's say you want to add another asset, DVI, to your portfolio. You sell 35% of DBB to purchase DVI. How much is your expected return for this portfolio? d) How much is the coefficient of variation for the new portfolio?

Please provide a step-by-step solution with an explanation.