Question
An investor purchased Google stock this morning for $876.00. Google stock has a beta of 1.22. The current risk free rate is 3.00%, while the
An investor purchased Google stock this morning for $876.00. Google stock has a beta of 1.22. The current risk free rate is 3.00%, while the historical market portfolio risk premium is 6%. If CAPM holds for Google, what should Google sell for in one year? (Assume that Google will not pay a dividend in the coming year)
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Handbook Of Modeling High Frequency Data In Finance
Authors: Frederi G. Viens, Maria Cristina Mariani, Ionut Florescu
1st Edition
0470876883, 978-0470876886
