Question
A company currently has $2.40 per share in free cash flows to equity (FCFE). The FCFE are anticipated to grow to 6% per year. The
A company currently has $2.40 per share in free cash flows to equity (FCFE). The FCFE are anticipated to grow to 6% per year. The investors required retun is 14%, what is the anticipated value of the firm at the end of 3 years?
A portfolio has a standard deviation of 22%. If the risk-free rate is 3.5%, the expected return on the market portfolio is 12%, and the standard deviation of the market portfolio is 25%, the required return on the market portfolio is?
Assume the annual average return on the S&P500 is 13.7% with a standard deviation of 17.5%. A risk-free asset has an annual average return of 4.0% with a standard deviation of 0.0% and a correlation with the S&P500 index of +0.00. An investor invests 60% of his portfolio in the S&P500 and the rest in the risk-free asset. The standard deviation of the investor
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