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Please show steps and use the Sharpe Ratio if applicable. Thank you 2. (15 points) Suppose the risk-free rate is 4% and the expected market
Please show steps and use the Sharpe Ratio if applicable. Thank you
2. (15 points) Suppose the risk-free rate is 4% and the expected market return is 10%. (a) (7 points) Find the beta of a stock with an expected return of 16% and an alpha of 2%. (b) (8 points) Another stock that just paid a dividend of $10 is selling for $100 and has a beta of 1.5. The alpha of this stock is zero. The growth rate of the dividend is 4%. What is the price of the stock nowStep by Step Solution
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