Question
Assume that CAPM is valid. A share of stock is now selling for $130. It will pay a dividend of $6 per share at the
| Assume that CAPM is valid. A share of stock is now selling for $130. It will pay a dividend of $6 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 4% and the expected rate of return on the market portfolio is 20%. (Round your answer to 2 decimal places.)
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Options Futures And Other Derivatives
Authors: John Hull
11th Global Edition
1292410655, 9781292410654
