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Thank you in advance, help is much appreciated! (a) should equal -7.0459%, (b) should equal -8.8640%, and (c) should equal -14.6459%, I'm just not sure
Thank you in advance, help is much appreciated!
(a) should equal -7.0459%, (b) should equal -8.8640%, and (c) should equal -14.6459%, I'm just not sure how to solve for these answers, particularly the first one.
Month Split Dividend Stock's end of month price (per share) January $130.00 February $146.00 $1.00 March $40.00 April $42.00 $1.00 May $29.00 (a). Referring to the table above, compute the expected rate of return of the stock for the month of JUNE. State your answer as a percentage with four digits after the decimal point. Denote negative returns with the "-" sign. (b). Referring to the table above, compute the monthly (do NOT annualize) time weighted return for Stock A over the 4 month period. State your answer as a percentage with four digits after the decimal point. Denote negative returns with the "-" sign. (c). If the RFR is 2%, the MRP is 8%, and the stock's estimated beta is 0.7, compute the Jensen's alpha for the stock whose monthly returns are given in the table above. State your answer as a percentage with four digits after the decimal point. Month Split Dividend Stock's end of month price (per share) January $130.00 February $146.00 $1.00 March $40.00 April $42.00 $1.00 May $29.00 (a). Referring to the table above, compute the expected rate of return of the stock for the month of JUNE. State your answer as a percentage with four digits after the decimal point. Denote negative returns with the "-" sign. (b). Referring to the table above, compute the monthly (do NOT annualize) time weighted return for Stock A over the 4 month period. State your answer as a percentage with four digits after the decimal point. Denote negative returns with the "-" sign. (c). If the RFR is 2%, the MRP is 8%, and the stock's estimated beta is 0.7, compute the Jensen's alpha for the stock whose monthly returns are given in the table above. State your answer as a percentage with four digits after the decimal pointStep by Step Solution
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