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Please show all work for each question Question 1 You bought Creepy Crawley stock one year ago for $65.92; it is now worth $51.88. You
Please show all work for each question
Question 1 You bought Creepy Crawley stock one year ago for $65.92; it is now worth $51.88. You also received is .0592 -- take out to 4 decimal places) dividend of $2 on this stock. What was your holding period return? (Leave in decimals 5.92% Question 2 You are estimating the expected return of Cray Corp's stock. You estimate the return is expected to be -19% in a recession, 7% in normal times and 17% in an expansion. Given a 30% change of recession, 50% chance of normal and 20% chance of expansion, what is the expected return on this stock? Put in decimal form with four decimal places. Question 3 Spider Corp has a beta of 1.0. The risk-free rate is 1.3% and the market risk premium is 4.0% (Note market risk premium is rm-rf) What is the required return on Spider's stock according to the CAPM? (Express in decimals up to four places example .0576)Step by Step Solution
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