Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 09, 2024

If a stock has a beta of .45, a STD of 35%, a forecasted dividend of $.50 and the stock price is $45, according to

If a stock has a beta of .45, a STD of 35%, a forecasted dividend of $.50 and the stock price is $45, according to the CAPM, what is the expected rate of return of the stock ?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Extreme Events In Finance A Handbook Of Extreme Value Theory And Its Applications

Authors: Francois Longin

1st Edition

1118650190, 978-1118650196

More Books

Students also viewed these Finance questions

Question

★★★★★

Since the winners from free trade can more than compensate the losers why does it matter if wages and employment fall when a country engages in free trade?

Answered: 1 week ago

Question

★★★★★

A firmusestwoinputsXandYtoproduceaspecificgood/service.Theproductionfunctionisasfollows(CobbDouglas):Q=F(X,Y)=.X0.2Y0.8 A.DerivetheequationforthemarginalproductofX(MPx)andY(MPy)....

Answered: 1 week ago

Question

★★★★★

Buyback of the call options results in a. Creating a fresh contract b. Squaring up of the existing short position c. Creating a long position d. None of the above

Answered: 1 week ago

Question

★★★★★

Nike, Inc. , had the following condensed balance sheet on May 31, 2011 ($ in millions): Suppose the following transactions occurred during the first 3 days of June ($ in millions): 1. Nike acquired...

Answered: 1 week ago

Question

★★★★★

Need Help figuring out the boxes not filled WAR (We Are Rich) has been in business since 1990. WAR is an accrual-method sole proprietorship that deals in the manufacturing and wholesaling of various...

Answered: 1 week ago

Question

★★★★★

Required: 1. Prepare a schedule of cost of goods manufactured for the month 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to...

Answered: 1 week ago

Question

★★★★★

Veach Division has total assets (net of accumulated depreciation) of $462,000 at the beginning of year 1. One of the assets is a machine that has a net book value of $43,260. Expected divisional...

Answered: 1 week ago

Question

★★★★★

Fixation biases arise from preconceived ideas formed about a person, group of people, or situation. Question: What four examples indicate a fixation bias? Instruction: Choose all options that best...

Answered: 1 week ago

Question

★★★★★

Payable Transactions Richmond Company engaged in the following transactions: a. Purchased $16,000 of supplies from ABC Supplies on February 16. Amount due in full on March 31. b. Paid for 25% of the...

Answered: 1 week ago

Question

★★★★★

The charter for KWVN TV, Inc. authorizes the company to issue 100,000 shares of $3, no-par preferred stock and 500,000 shares of common stock with $1 par value. During its start-up phase, KWVN -TV...

Answered: 1 week ago

Question

★★★★★

A firm CEO assumes that managers are agents who are likely to engage in self-serving opportunistic activities if left to their own devices. Which debate supports this perspective? a....

Answered: 1 week ago

Question

★★★★★

Consider your relationship with your oldest friend or with a close family member. Evaluate the ways in which dialectical tensions have manifested themselves in that relationship over the years. Have...

Answered: 1 week ago

Question

★★★★★

C If you were to create a profile for yourself on a dating site, how carefully would you construct it?

Answered: 1 week ago

Question

★★★★★

Stages of a Relationship?

Answered: 1 week ago

Previous Question Next Question