Question
The following is the market risk premium and beta of a stock that pays $6 dividend forever. Determine the expected stock price if the risk-free
The following is the market risk premium and beta of a stock that pays $6 dividend forever. Determine the expected stock price if the risk-free rate is 2%:
a. Risk Premium=6%, = 1.2
b. Risk Premium=8%, = 0.8
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The Professional Risk Managers Guide To Financial Market Bond Markets
Authors: Professional Risk Managers' International Association (PRMIA)
1st Edition
0071738932
