covariance of the market's return with a Stock A's return is 0.003 and the standard deviation of
Fantastic news! We've Found the answer you've been seeking!
Question:
covariance of the market's return with a Stock A's return is 0.003 and the standard deviation of the market's return is 0.05. Stock A's beta is __________
the risk free rate is 6% and the expected market return is 15%. Stock A's current price is $25 and will pay a $1 dividend at the end of the year. if the stock is priced at $30 at year-end, it is ____________
a) 1.2; underpriced, so buy it
b) 1.5; underpriced , so buy it
c) 1.2 overpriced , so sell it
d) 1.5 overpriced, so sell it
e) none
with explation
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
4th edition
Authors: David Haddock, John Price, Michael Farina
Posted Date: