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Question 3 Not yet answered Marked out of 6.00 Flag question a. The risk-free rate is 4.25% and the expected market return on the
Question 3 Not yet answered Marked out of 6.00 Flag question a. The risk-free rate is 4.25% and the expected market return on the portfolio is 13%. What is the expected return on a share equity portfolio with a beta equal to 1.5? (3 marks) b. Sydney Ltd expects its growth in ordinary share dividends to be a very steady 3.5 per cent per year for the indefinite future. The company's share is currently selling $30, and the company just paid dividend of $2.50 yesterday. What is the cost of ordinary share equity for this company using growth model? (3 marks)
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