Question
A stock's rate of return in year 1 is 0.1, in year 2 is 0.3, and in year 3 is 0.2. What is the stock
A stock's rate of return in year 1 is 0.1, in year 2 is 0.3, and in year 3 is 0.2. What is the stock annual arithmetric average return?
A stock's rate of return in year 1 is 0.2, in year 2 is -0.1, and in year 3 is 0.4. What is the stock annual geometric return?
Milo Corporation has a Beta of 0.7. The U.S. government T-Bill is expected to yield 0.02, and the S&P 500 is expected to yield 0.08 in the near future. What is Milo's required rate of return?
A stock has a beta of 1.4, the riskless rate is 0.04 and the market premium is 0.1. The stock will return a constant $2 as dividend in perpetuity. What is the price of the stock?
A stock has a beta of 0.8, the riskless rate is 0.03 and the market premium is 0.070. The stock will return a $3 as dividend for 20 years (starting a year from now) and after that nothing (firm will liquidate). What is the price of the stock?
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