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Given the following information from Sheridan Corporation, what price would the CAPM predict that the company's stock will trade for one year from today? (Do

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Given the following information from Sheridan Corporation, what price would the CAPM predict that the company's stock will trade for one year from today? (Do not round intermediate calculations. Round final answer to 2 decimal places, eg. 50.75.) Risk free rate: 3.3 % Market risk premium: 7.5 % Beta: 0.78 Current stock price: $67.40 Annual dividend: $1.93 Price $ $ 68.09 Your answer is partially correct. Patricia recently invested in real estate with the intention of selling the property one year from today. She has modeled the returns on that investment based on three economic scenarios. She believes that if the economy stays healthy, then her investment will generate a 30 percent return. However, if the economy softens, as predicted, the return will be 10 percent, while the return will be -25 percent if the economy slips into a recession. If the probabilities of the healthy, soft, and recessionary states are 0.4.0.3, and 0.3, respectively, then what are the expected return and the standard deviation of the return on Patricia's investment? (Round answers to 3 decimal places, eg. 0.125 and round intermediate calculations to 5 decimal places, eg. 0.07680.) Expected return .075 Standard deviation .24031

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