Business

Business, 13.07.2019 10:00, imgraciebaker

Suppose the minicd corporation's common stock has an expected return of 12%. assume the risk-free rate is 4%, the expected market return is 9%, and no unsystematic influence affected mini's return.

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Business, 13.07.2019 14:00, roseemariehunter12

Suppose the yield on short-term government securities (perceived to be risk-free) is about 4%. suppose also that the expected return required by the market for a portfolio with a beta of 1 is 6.0%. according to the capital asset pricing model: a. what is the expected return on the market portfolio? (round your answer to 1 decimal place.) expected rate of return % b. what would be the expected return on a zero-beta stock? expected rate of return % suppose you consider buying a share of stock at a price of $55. the stock is expected to pay a dividend of $6 next year and to sell then for $57. the stock risk has been evaluated at β = –0.5. c-1. using the sml, calculate the fair rate of return for a stock with a β = –0.5. (round your answer to 1 decimal place.) fair rate of return % c-2. calculate the expected rate of return, using the expected price and dividend for next year. (round your answer to 2 decimal places.) expected rate of return % c-3. is the stock overpriced or underpriced? underpriced overpriced

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Business, 16.07.2019 18:30, KennyMckormic

Suppose the yield on short-term government securities (perceived to be risk-free) is about 4%. suppose also that the expected return required by the market for a portfolio with a beta of 1 is 7.0%. according to the capital asset pricing model: a. what is the expected return on the market portfolio? (round your answer to 1 decimal place.) b. what would be the expected return on a zero-beta stock? suppose you consider buying a share of stock at a price of $50. the stock is expected to pay a dividend of $5 next year and to sell then for $52. the stock risk has been evaluated at β = –0.5. c-1. using the sml, calculate the fair rate of return for a stock with a β = –0.5. (round your answer to 1 decimal place.) c-2. calculate the expected rate of return, using the expected price and dividend for next year. (round your answer to 2 decimal places.)

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Business, 06.08.2019 02:30, darantjohnson

Suppose the rate of return on short-term government securities (perceived to be risk-free) is about 6%. suppose also that the expected rate of return required by the market for a portfoliowith a beta of 1 is 13%. according to the capital asset pricing model: a. what is the expected rate of return on the market portfolio? b. what would be the expected rate of return on a stock with β = 0? c. suppose you consider buying a share of stock at $40. the stock is expected to pay $3 dividends next year and you expect i t sellthem for $41. the stock risk has been evaluated at β = -.5. is the stock overpriced or underpriced?

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