A stock is priced today at $12.70. Analysts have a consensus view that the stock will be valued at $15.62 next year. The stock will not pay a dividend in the coming year. After a little research, you know that the stock has a beta of 1.00. The risk free rate in the economy is 5.00%, while the market risk premium is 6.00%. If CAPM and the analysts are correct, what price SHOULD the stock be trading at TODAY

The stock should be trading at $14,74 today

Explanation:

In Capital Market Asset Pricing (CAPM) model.   expected return = risk-free rate + beta*(market risk premium - risk-free rate)

=  5% + 1*(6%-5%) = 6%

If Analysts have a consensus view that the stock will be valued at $15.62 next year, then basing on expected return 6%, the stock price today should be

= $15.62%/(1+6%) = $14.74

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

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