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Hello tutors. I need help with some finance problems. Please see attached. Due today at 3PM. Much appreciated. 2. Investors expect the market rate of

Hello tutors. I need help with some finance problems. Please see attached. Due today at 3PM. Much appreciated.

image text in transcribed 2. Investors expect the market rate of return this year to be 13.00%. The expected rate of return on a stock with a beta of 1.6 is currently 20.80%. If the market return this year turns out to be 11.40%, how would you revise your expectation of the rate of return on the stock? (Round your answer to 1 decimal place.) What is revised rate of return? 3. The market price of a security is $70. Its expected rate of return is 12%. The risk-free rate is 7%, and the market risk premium is 7%. What will the market price of the security be if its beta doubles (and all other variables remain unchanged)? Assume the stock is expected to pay a constant dividend in perpetuity. What is the market price? 5. A share of stock is now selling for $125. It will pay a dividend of $8 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 7% and the expected rate of return on the market is 19%. (Round your answer to 2 decimal places.) What is the expected selling price? 7. A stock has an expected return of 6%. What is its beta? Assume the risk-free rate is 5% and the expected rate of return on the market is 10%. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Calculate Beta

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