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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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
