Question
The risk-free rate is 3.6%, and the expected market return is 7.5%. A stock with a beta of 1.2 is selling for $25 and will
The risk-free rate is 3.6%, and the expected market return is 7.5%. A stock with a beta of 1.2 is selling for $25 and will pay a $1.2 dividend at the end of the year. If the stock is priced at $30 at year-end, is it over priced or under priced?
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Lets calculate the expected return using the Capital Asset Pricing Model CAPM ...
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
