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Consider the data for Roadrunner Enterprises for the following two questions. The company's next dividend is expec dividends areexpected beta of 1.80. The riskheerate is

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Consider the data for Roadrunner Enterprises for the following two questions. The company's next dividend is expec dividends areexpected beta of 1.80. The riskheerate is 3%, and stocks, as measured by the 8&P500 Index, are expected to have a total return of 10% per year indefinitely ted to be $2.00, and to grow at 5% per year forever. The stock has a 24. What is the stock's Fair Market Value? A) Less than $20 B) $20 to $25 C) $25 to $30 D) $30 to $35 B) More than $35 25. Which or the tollowing is a weakness in ustng standard deviations and arthmetic averages in analyzang and predicting returns? A) Standard deviations are relative risk measures and the benchmark may not be appropriate. B) Standard deviations don't consider the entire risk of securities. C) An underlying assumption is that the data is normally distributed. The table below shows the bedinninand

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