Question
The current stock price of ABCD is $160. Analysts have done research and figured that the beta of WXYZ is 0.77. The one-year risk-free rate
The current stock price of ABCD is $160. Analysts have done research and figured that the beta of WXYZ is 0.77. The one-year risk-free rate is 3%, and the expected return on the market index for the coming year is 8%. Suppose that CAPM holds. The expected price of WXYZ in one year is closest to:
$172.80
$174.66
$164.80
$160.00
$170.96
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Fundamentals Of Investments Valuation And Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
9th Edition
1260013979, 9781260013979
