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A stock selling for $20.00 today and expected to have an income (dividend) yield of 3%, and a capital gain yield of 5% in one
A stock selling for $20.00 today and expected to have an income (dividend) yield of 3%, and a capital gain yield of 5% in one year is supposed to sell at: a) $21.60 ( b) $20.60 O c) $21.00 O d) $20.40A stock selling for $12.00 today is expected to pay a $1.50 dividend and have a capital gain 01'596 in one 1wear is supposed to sell at: O 31$ 13.50 0 b} $ 14.10 0 c] $ 12.60 0 d] $ 15.13 Stocks A and B have a correlation of +1. If stock A went from $10 to $12 over the past month, what is the price of stock B, if its price one month ago was $5? ( a) $5 (b) $4 ( c) $6 O d) Cannot be determinedThe expected return on the market is 12.5 percent with a standard deviation of 25 percent. The risk-free rate is 5.5 percent. What is the expected return on an efficient portfolio with a standard deviation 01'30 percent? 0 a} 4.10% O b} 11.33% 0 c] 13.90% 0 d] 23.90% A portfolio is composed of $2,000 invested in Stock A, $3,000 in Stock B, $4,000 in Stock C, and $5,000 in Stock D. What is the beta of the portfolio if the betas of Stock A, B, C, and D are 0.9, 1.6, 1.8 and 1.2, respectively? ( a) 1.03 O b) 1.26 O c) 1.41 O d) 1.65
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