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attempt all Your estimate of the market risk premum is 5%. The risk-free rate of retum is 6%, and Generai Motors has a beta of
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Your estimate of the market risk premum is 5%. The risk-free rate of retum is 6%, and Generai Motors has a beta of 1.1. According to the Captal Asset Pricing Model (CAPPA), what is its expected return? A. 115% B. 9.8% C. 8.67 D. 1099 Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at 550 per shate, 200 shares of Lowes (LOW) at $30 per share, and 100 shates of Ball Corporation (BLL) at $40 per share Suppose over the next year Ball has a return of 12.4%, Lowes has a retuin of 20%, and Abbott Labs has a retum of - 10%. The value of your portolio over the year 15 A. $22,766 B. $19.661 C. $20,696 D. $21,731 Ford Motor Company had realized returns of 10%,25%,15%, and 20% over four quarters. What is the quarterly standard deviation of retums for ford? A. 19.09% B. 23.33% C. 25.46% D. 2121% You expect General Motors (GM) to have a beta of 1.3 over the next year and the beta of Exon Mobil (XOM) to be 0.9 over the next year. Also, you expect the volatilty of General Motors to be 40% and that of Excon Mobed to be 30% over the next year Which stock has more systematic risk? Which stock has more fotal tisk? A. OM,GM B. GM, GM c. GM, OM D. OM,XOM Valorous Corporation will pay a dividend of $1.85 per share at this years end and a dividend of 52.30 per stare at the end of next year if is expected that the price of Vaborous' stock will be $45 per share after two years. If Vabotous has an equity cost of capital of 9%, what is the maximum paice that a prudent investor would be willing to pay for a share of Valorous slock today? A. 541.51 B. $3520 c. 539.43 D. 54359 Step by Step Solution
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