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doing extra homework before my test in a few days, please help me figure out thisnoroblem Stock A has an expected return of 12% and
doing extra homework before my test in a few days, please help me figure out thisnoroblem Stock A has an expected return of 12% and a standard deviation of 40%. Stock B has an expected return of 18% and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.20. a. What is the expected return of a portfolio invested 30% in Stock A and 70% in Stock B? A b. What is the standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B? A) The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 7% per year in the future. Shelby's common stock sells for $38 per share, its last dividend was $2.00, and the company will pay a dividend of $2.14 at the end of the current year. a. Using the discounted cash flow approach, what is its cost of equity? A b. If the firm's beta is 1.0, the risk- free rate is 8%, and the expected return on the market is 13%, then what would be the firm's cost of equity based on the CAPM approach? A
doing extra homework before my test in a few days, please help me figure out thisnoroblem
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