Question
Consider the following stocks, all of which will pay a liquidating dividend in a year and nothing in the interim . Market Capitalization ($ million)
Consider the following stocks, all of which will pay a liquidating dividend in a year and nothing in the interim.
|
| Market Capitalization ($ million) | Expected Liquidating Dividend ($ million) | Beta |
| Stock A | 908 | 1,000 | 0.74 |
| Stock B | 840 | 1,000 | 1.54 |
| Stock C | 841 | 1,000 | 1.37 |
| Stock D | 879 | 1,000 | 0.76 |
Calculate the expected return for each stock. The expected return of Stock A is __________%. (Round to two decimal places.) The expected return of Stock B is __________%. (Round to two decimal places.) The expected return of Stock C is __________%. (Round to two decimal places.) The expected return of Stock D is __________%. (Round to two decimal places.)
The correlation between the expected return and market capitalization of the stocks is __________. (Round to five decimal places.)
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Financial Institutions Investments And Management An Introduction
Authors: Herbert B. Mayo
8th Edition
0324178174, 9780324178173
