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Intro Assume that the CAPM is true. Stock 1 has a price of $63 and a beta of 0.7. The stock is expected to pay
Intro Assume that the CAPM is true. Stock 1 has a price of $63 and a beta of 0.7. The stock is expected to pay an annual dividend of $1.35 one year from now. Stock 2 has a beta of 1 and its required return is 7.9%. Stock 3 has a beta of 1.5 and its required return is 8.2%. Part 1 - Attempt 1/15 for 10 pts. What is the required return on the market portfolio? 3+ decimals Submit Part 2 - Attempt 1/15 for 10 pts. What is the risk-free rate? 3+ decimals Submit Part 3 - Attempt 1/15 for 10 pts. What is the required return for stock 1? 3+ decimals Submit Part 4 | Attempt 1/15 for 10 pts. What price do you expect for stock 1 after one year, just after the dividend payment? 0+ decimals Submit
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