You have assigned the following values to these three firms:    Price Upcoming Dividend Growth Beta   Estee Lauder $50.00 $1.70 16.50% 0.74   Kimco Realty 82.00 1.68 11.00 1.51   Nordstrom 10.00 0.60 13.00 1.02 Assume that the market portfolio will earn 15.50 percent and the risk-free rate is 6.40 percent. Compute the required return for each company using both CAPM and the constant-growth model. (Do not round intermediate calculations and round your final answers to 2 decimal places.)   CAPM Constant-Growth Model Estee Lauder required return ____.__% ____.__% Kimco Realty required return ____.__% ____.__% Nordstrom required return ____.__% ____.__%

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Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.