Question
BOTH QUESTIONS PLEASE 1) An analyst gathered the following information for a stock and market parameters: Stockbeta equals zero. Seven; expect a return on the
BOTH QUESTIONS PLEASE
1) An analyst gathered the following information for a stock and market parameters: Stockbeta equals zero. Seven; expect a return on the market equals 10.2%; expected return of T-bills equals 1%; current stock price equals $9.23; expected stock price in one year equals $10.79; expected dividend payment next year equals $3.54. Calculate the: a) required return for this stuff. B) expected return for this stock
2) The market risk premium for next period is 9.2% and the risk free rate is 2.2%. Stock Z has a beta of 0.73 and expected return of 9.9%. What is the A) markets reward to risk ratio? B) stock Zs reward two risk ratio
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