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Investors expect the market rate of return in the coming year to be 12%. The T-bill rate is 4%. Changing Fortunes Industries' stock has a
Investors expect the market rate of return in the coming year to be 12%. The T-bill rate is 4%. Changing Fortunes Industries' stock has a beta of 0.5. The market value of its outstanding equity is $100 million. If the market return in the coming year actually turns out to be 10%, what is your best guess as to the rate of return that will be earned on Changing Fortunes' stock? Continue from Question 8. Suppose now that Changing Fortunes wins a surprising lawsuit during the year. Changing Fortunes' stock return during the year turns out to be 10%. What is your best guess as to the settlement amount won by Changing Fortunes
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