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A) A stock presently has a Beta of 1.5, the risk-free rate is 7% and the market risk premium is 12%. Calculate the expected return
A) A stock presently has a Beta of 1.5, the risk-free rate is 7% and the market risk premium is 12%. Calculate the expected return for this stock. (1 Mark)
B) That same stock was purchased at the start of the year for $20 and is now worth $18 and also paid a $3 dividend during this time. What is the holding period return for this stock? (1 Mark)
C) Stanley Genadek calculated an expected return of 5% on a stock and a coefficient of variation of 1. Calculate the standard deviation. (1 Mark)
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