Question
1. Calculate the required rate of return for a stock with a beta of 0.70 in an economy with a risk-free rate of 2.02 and
1. Calculate the required rate of return for a stock with a beta of 0.70 in an economy with a risk-free rate of 2.02 and an expected market return of 6.07 (Enter your answer in percent to 2 decimal places: e.g., 5.23)
2.Calculate the idiosyncratic risk (standard deviation) of a stock with a beta of 0.9 and a volatility of 42% when the market volatility is 16%. (Enter your answer in percent to 2 decimal places: e.g., 5.23, not 0.0523)
3.What is the price of preferred stock that pays an annual dividend of USD 1.4 and has a required rate of return of 1.74%/year? (Enter your answer to 2 decimal places: e.g., 5.23)
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