Question
Consider a share of stock that cost $50 one year ago but is worth $55 today (assume no dividends were paid out)? 1. What was
Consider a share of stock that cost $50 one year ago but is worth $55 today (assume no dividends were paid out)?
1. What was the total (annual) return?
2. If the Rfis 4% and Rmis 12%, what is this stocks beta (assume the beta has stayed the same since last year and the stock is in equilibrium)?
3. Using the same information, now assume the stock costs $52 today. If it is in equilibrium, what must its beta be under this situation?
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Financial Management For Nurse Managers And Executives
Authors: Cheryl Jones, Steven A. Finkler, Christine T. Kovner, Jason Mose
5th Edition
0323415164, 9780323415163
