Question
Consider a stock whose price is currently $104.08 that offers a rate of return of 16 percent. The expected return on the market portfolio is
Consider a stock whose price is currently $104.08 that offers a rate of return of 16 percent. The expected return on the market portfolio is 12 percent, and the risk-free rate of return is currently 7 percent. Suppose that expected returns are generated by the CAPM. If the stock's beta increases by 38 percent what will the firm's share price become?
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Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
Authors: Robert A.Weigand
1st edition
978-111863091, 1118630912, 978-1118630914
