Question
A particular stock sells for $30. The stock's beta is 1.25 the risk-free rate is 4%, and the expected return on the market portfolio is
A particular stock sells for $30. The stock's beta is 1.25 the risk-free rate is 4%, and the expected return on the market portfolio is 10%. If you forecast that the stock will be worth $33 next year (assume no dividends), should you buy the stock or not?
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The Handbook Of Credit Portfolio Management
Authors: Greg Gregoriou, Christian Hoppe
1st Edition
0071598340, 978-0071598347
