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a. You have the opportunity to invest some money in a share. When looking at the market you realize that the risk-free rate is 1%,
a. You have the opportunity to invest some money in a share. When looking at the market you realize that the risk-free rate is 1%, your portfolio delivers 7% and when you look at the share you are interested in is has a Beta of 1,5. What is the required return you are looking at?
b. Another share will deliver 30 in annual dividend and the rate of return is 5%. What is the value of this share?
c. Describe the change in the financial services during the last 50 years.
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