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PLEASE ANSWER ALL QUESTIONS Consider the following data for two risk foctors (1 and 2) and two securities (J and L) : 0=0.041=0.012=0.02b21=0.70b12=1.30b21=1.55b22=2.05 a. Compute
PLEASE ANSWER ALL QUESTIONS
Consider the following data for two risk foctors (1 and 2) and two securities (J and L) : 0=0.041=0.012=0.02b21=0.70b12=1.30b21=1.55b22=2.05 a. Compute the expected returns for beth securities. Round your answers to two decimal places. Expected return for security 3: Expected return for security L: b. Suppose that Security ) is currenty priced at $23.50 while the price of Security L is $12.25. Further, is expected that both securities will pay a dividend of $0.60 during the coming year. What is the expected price of each security one year frem now? Do not round intermediate calculations. Found your answers to the nearest cent. Expected price for security I: 5 Expected price for security L: 1 Step by Step Solution
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