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(4 pts.) Adidas stock has a beta of 1.8. The risk-free rate is 3.6% and the expected return on the market portfolio is 9%. The
(4 pts.) Adidas stock has a beta of 1.8. The risk-free rate is 3.6% and the expected return on the market portfolio is 9%. The company has Just paid an annual dividend of $0.3. Dividends are expected to grow by 3% per year. What is the intrinsic value (fair price) of the stock? (2 pts.) Brent Crude (BZ) oil currently costs $75 per barrel. The yield on T-Bills is 0.8% (EAR). What should be the futures price for a barrel of Brent Crude (BZ) oil to be delivered in 3 months? (2 pts.) A corporate bond has 20 years to maturity, a face value of $1,000, a coupon rate of 4.8% and pays interest semiannually. The annual market interest rate for similar bonds is 3.4%. What is the price of the bond
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