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Imagine that you purchased an asset for $54. imagine further that you are expecting the following returns over time : $55,$60,$65 and $70 , what

Imagine that you purchased an asset for $54. imagine further that you are expecting the following returns over time : $55,$60,$65 and $70 , what will be your holding period return? suppose the probabilities that are associated with your expectations are: 0.30, 0.25, 0.25, and 0.2, what will be your expected return? (b) estimate the variance and standard deviation (c) suppose the market and risk free rates are 6 and 4 respectively, what will be the sharpe ratio. home work#4 chapter 9. suppose the price of a ten year note with a face value of $1000 and 5 percent coupon payment has a market rate of 10%, what is the present value of the bond? (3) suppose a stock currently valued at $50 per share is expected to increase to $55 per share next year, what is the current value of the stock if the risk adjusted rate is 12% ? ( use the Gordon constant growth mode)

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