Question
6a. Company ABC trades in the stock market. Its = 1. The market portfolio return is 12%. What is the expected return on companys stock?
6a. Company ABC trades in the stock market. Its = 1. The market portfolio return is 12%. What is the expected return on companys stock?
6b. You are going to receive dividends from company ABC in years 1 and 2. After that, the company will disappear. The dividends will be $100 in every period. What is the price of the companys stock if you use the information from the previous question?
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Analysis for Financial Management
Authors: Robert c. Higgins
8th edition
73041807, 73041803, 978-0073041803
