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You are holding a stock that and has a beta of 2 and is currently in equilibrium. The required return on the stock is 15%,
You are holding a stock that and has a beta of 2 and is currently in equilibrium. The required return on the stock is 15%, and the market return is 10 percent. What would be the return on the stock, if the market return increased to 13% while the risk-free rate remained unchanged? O A. 19% OB. 18% OC. 20% OD.21% Which of the following is a FALSE statement about preferred shares? O A. Have preference over common shares with respect to income and assets. OB Dividends must be paid in entirety before the common shareholders can receive any payments. OC. Provide the owner with a claim to a fixed amount of equity. OD Always have voting rights. You purchased 200 shares of preferred stock on January 1, 2002 for $42.27 per share. The stock pays an annual dividend of $7 per share. On December 31, 2002 the market price is $46.88 per share. What is your total dollar return for the year? O A. $2,322 B. $2530 OC. $478 OD. $922 What are the arithmetic and geometric average returns for a stock with annual returns of 26%, 4%, -30%, 43%, and 7%? O A. 12.5%; 7.0% B. 10.0%; 8.8% O C. 10.0%; 7.0% OD. 10.0%; 21.8%
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