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any answers will rated immediately Q4.3 Question 4.3 5 Points Penske Ltd has a standard deviation of returns of 18% and a correlation with the
any answers will rated immediately
Q4.3 Question 4.3 5 Points Penske Ltd has a standard deviation of returns of 18% and a correlation with the market portfolio of 0.8. The market portfolio's expected return is 14%, its standard deviation of returns is 12%, and the riskfree rate of return is 6% Calculate the equilibrium return on the company's shares Show all calculations. If the expected return based only on the variable dividend growth model is 14% are the shares correctly priced? If not, what would happen to the share price and why? (No calculations required) Please select nie Select files Enter your answer here Step by Step Solution
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