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only need question 25 solved. thanks Suppose the yield on short-term government securities (perceived to be risk-free) is about 2% and the expected return required
only need question 25 solved. thanks
Suppose the yield on short-term government securities (perceived to be risk-free) is about 2% and the expected return required by the market for a portfolio with a beta of 1 is 12%, Question 24 (1 point) According to the capital asset pricing model, what are the expected returns on the market portfolio and a zero-beta stock? Return on market = 12%, Return on zero-beta stock = 0% Return on market = 12%, Return on zero-beta stock = 2% Return on market = 10%, Return on zero-beta stock = 0% Return on market = 10%, Return on zero-beta stock = 2% Question 25 (1 point) Suppose you consider buying a share of stock at a price of $41. The stock is expected to pay a dividend of $2.5 next year and to sell them for $45. The stock risk has to be evaluated at beta= 0.85. What are the CAPM return and actual return on this stock Step by Step Solution
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