Price (P/E) x EPS: V- Dk: V = D/(kg): k=E() +[E(M)- E(r)=+B[E(M)-rd. P/E = (1/earnings yield); V, [E(D)+ E(P)(1+k) Pp-EWB: S = [E(r)-ro: Sp = [E(rp)-/op: PAB =[Cov (A. BY(0Ax Bll CoV (FATB)= PABOA OB: Capital Gain yield = [(Ps-PayPal: Dividend yield - Div/Ps HPR = [(Ps-Ps) + Div/Ps: HPR = Capital Gain Yield + Dividend Yield Arithmetic Average = Sum of returns in each period divided by number of periods: Geometric Return = [(1+r) x (1+) Xx... (1+r)]-1: E(rp) =EWE(): R=r+E() Consider the CAPM. The risk free rate is 5%, and the expected return on the market is 15%. What is the Beta on a stock with an expected return of 22%? 1.7 0.7 1.5 O 1.2