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please answer both Qs P/E = Price per share/Earnings per share si Question 17 4 pts A company's stock has an expected return of 12.50%,
please answer both Qs
P/E = Price per share/Earnings per share si Question 17 4 pts A company's stock has an expected return of 12.50%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 2.00% what is the market risk premium? Do not round your intermediate calculations, 10.50% 8.48% 7.98% 8.40% 6.80% Previous Nexy Not saved Submit Quiz Question 14 4 pts You observe the following information regarding Companies X and Y: -Company X has a higher expected return than Company Y. -Company X has a lower standard deviation of returns than Company Y. --Company X has a higher beta than Company Y. Given this information, which of the following statements is CORRECT? O Company has more diversifiable risk than Company Y. O Company X has a lower coefficient of variation than Company Y. O Company X has less market risk than Company Y. O Company X's returns will be negative when Y's returns are positive, O Company X's stock is a better buy than Company Y's stock. Previous Nexty
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