Question
11. Calculate the expected annual dividend, if a stock currently selling for $50 per share that has a 16% expected return and a 10% expected
11. Calculate the expected annual dividend, if a stock currently selling for $50 per share that has a 16% expected return and a 10% expected capital appreciation?
12. According to the capital asset pricing model the expected return on shares in the Gamma Corporation is 10.6%.
The beta value associated with these shares is 1.1 and the risk free rate of interest is 4%.
Given this information, calculate the market risk premium and the expected return on the market portfolio?
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
