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Help with C2 Suppose the yield on short-term government securities perceived to be risk-free) is about 4% Suppose also that the expected return required by
Help with C2
Suppose the yield on short-term government securities perceived to be risk-free) is about 4% Suppose also that the expected return required by the marice for a portfolio with a bets of 119.0%. According to the capital asset pricing modet a. What is the expected return on the market portfolio? (Round your answer to 1 decimal place.) Answer is complete and correct. Expected rate of return b. What would be the expected return on a zero-bets stock? Answer is complete and correct. Expected rate of return + Suppose you consider buying a share of stack at a price of $90. The stock is expected to pay a dividend of $12 next year and to sell then for $93. The stock nisk has been evaluated at 3--0.5. -1. Using the SML, calculate the fair rate of return for a stock with a 3--0.5. (Round your answer to 1 decimal place.) Answer is complete and correct. Fair rate of return 150 c-2. Calculate the expected rate of return, using the expected price and dividend for next yesr. (Round your answer to 2 decimal places.) 3 Answer is complete but not entirely correct. Expected rate of return 16 85%Step by Step Solution
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