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Share Current price expected price in one year expected dividend Beta A 25 27 0.5 0.5 B 40 42 0.5 1 if the risk-free rate=6%
Share | Current price | expected price in one year | expected dividend | Beta |
A | 25 | 27 | 0.5 | 0.5 |
B | 40 | 42 | 0.5 | 1 |
if the risk-free rate=6% and the market premium=6%,
A) the estimated returns for share A and share B respectively are?
B) The required rate of return for Share A and share respectively B are?
c) Alpha for share A
d) alpha for share B
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