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The covariance between stock B and market portfolio is 0.03 The expected return for market portfolio is 11%, variance is 0.02 Risk free rate is
The covariance between stock B and market portfolio is 0.03
The expected return for market portfolio is 11%, variance is 0.02
Risk free rate is 2%.
1) Please calculate expected return for stock B, beta, risk premium
2) If stock B pays dividend $15 at the end of each year and forever, how to calculate the stock price of B?
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