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Please help, please show work! Thank you! The solutions are given, just need help understanding and computing the work 19. C, 20. C, 21. B
Please help, please show work! Thank you! The solutions are given, just need help understanding and computing the work
19. C, 20. C, 21. B
In equilibrium, what should the growth rate for the stock be, given the following characteristics: 19. Beta: Market risk premium: Current market price: Risk-free rate 2.0 5.5% $17.03 8.0% $2.50 Expected dividend in year 1: -2.1% a. b. 2.8% 4.3% c. d. 6.1% 8.6% e. 20. Given the following probability distribution what are the expected return and standard deviation for this security? Return 14% Economy Good 0.2 Normal 0.6 15% 21% Bad 0.2 15%, 1.50% 15%, 5.18% 16%, 2.53% 16%, 6.04% 18%, 5.00% a. b. c. d. e. 21. You are holding a stock which is currently in equilibrium. The required rate of return on the stock is 20% when the return for the market is 15%. What will be the percentage change in the required rate of return if both the risk-free rate and the market return increase by 3%? This stock has a beta of 2. +0% a. b. +3% +6% c. d. +9% +23% e
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