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The risk - free rate of return is 8 % , the expected rate of return on the market portfolio is 1 5 % ,
The riskfree rate of return is the expected rate of return on the market portfolio is and the stock of Xyrong Corporation has a beta coefficient of Xyrong pays out of its earnings in dividends, and the latest earnings announced were $ per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of per year on all reinvested earnings forever. If the market price of a share is currently $ and you expect the market price to be equal to the intrinsic value one year from now, what is your expected year holdingperiod return on Xyrong stock? Do not round intermediate calculations. Round your answer to decimal places.
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