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4. Stock Q has a Beta of 1.42 and a standard deviation of 43%. The market has a standard deviation of 22%. a. Calculate the
4. Stock Q has a Beta of 1.42 and a standard deviation of 43%. The market has a standard deviation of 22%. a. Calculate the percentage of systematic risk and non-systematic risk in Stock Q? 5. Stock H has just paid a dividend of $4.40 per share, and it is expected to grow payments by 2.3% perpetually. The Beta for Stock H is 1.6 . The risk-free rate is 4% and the expected return on the market is 9%. a. Calculate the cost of equity for Stock H b. Calculate the intrinsic value of Stock H c. Calculate the intrinsic value of Stock H one year from today d. If the current price of Stock H is $45.00, calculate the expected alpha of Stock H (don't forget to include the dividend payment when calculating one-year returns) 4. Stock Q has a Beta of 1.42 and a standard deviation of 43%. The market has a standard deviation of 22%. a. Calculate the percentage of systematic risk and non-systematic risk in Stock Q? 5. Stock H has just paid a dividend of $4.40 per share, and it is expected to grow payments by 2.3% perpetually. The Beta for Stock H is 1.6 . The risk-free rate is 4% and the expected return on the market is 9%. a. Calculate the cost of equity for Stock H b. Calculate the intrinsic value of Stock H c. Calculate the intrinsic value of Stock H one year from today d. If the current price of Stock H is $45.00, calculate the expected alpha of Stock H (don't forget to include the dividend payment when calculating one-year returns)
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