ul Consider the following stock of which will pay a liquidating dividend one year from now and nothing in the interim. Assume the risk freeroll 4% and the market risk premium 7 What does the CAPM predict the expected return for each stock should be? b. Charly, the CAPM predictions are not allow acol expected returns to the CAPM does not hold you decide to investigate this father. To see what kind of mistakes the CAPM is making you decide to get a expected return onto the expected retum predicted by the CAPM What is the intercept and slope coefficient of this regression? e. What are the residuals of the regression in part? That is, for each stock compute the diference between the actual expected room and the best fringine given by the intercupt and slope coefficient in part() d. What is the sign of the correlation between the residuals you calculated in part(c) and market capitalization? . What can you conclude from your answers to part of the previous problem and part(d) of this problem about the relation between tms. market capitalization and return? (The results do not depend on the partie numbers in this problem. You are welcome to verify this for yourself by redoing the problems with another value for the market is premium, and by picking the stock bele and market capitalizations adonly) According to CAPM, the expected retum for Hock Round to four decimal place) According to CAPM. the expected retum for Sock B Round to four decimal places) According to CAPM the expected return for stock in (Round to four decimal places) an According to CAPM. The expected retum et stock Daround to four decimal poce) wit. Clenby the CAPM predictions we not equal to the actual expected resume te the CAPM does not hold you decide to investigate this tuttet. To see what we of mistakes the CAP is making you decide to get the act expected retur onto the expected return presicted by the CAPM What is the intercept and slope coufficient of this regression? The slope coefficient of the repression (Round to sx orcimal places) Chap The rest of this regressioni round to four dem What are the modus of the regression in part? That is for each come herence the adults and the singine given by the Internet and openingar Em For each compute the difference between the expected and the best thing the only the rest in slope contin bond to four des Acces Click to select your answer 154 Consider the foloang vokal of which wilayalading dress from now and thing in thermometers and then in What does the CAP pred the ed un formato be! Clear. CAP content cual to the lead return to the CAPM sh. You decide to vestigate the Town of the CAP. you do together What are there of the red by? That breach lock compute the forence been teacherpecudum and the best fringing by the terms and slope comfort in What can you conclude from your news to part of the womandport them about the relation between two ton? (The report on the scenesha them. You are welcome very later yourself by reling te problems with one counter Dentro premu, odbywarga sekitar mi morat apstrators and For each trick compute the recentes expected read the best things by the end oformin od to decimal process Martt Capitation Expected Liquidating Bete Residus of regressie Divided in Return 1000 0.02 1000 two ON 1.000 What the continued it and man The common sen mycket What can you conduction your photos and promotion between the motors probom You Wicona to wytworn with the used to the went to come best choice A The woman that, but there SA Con the wing wat of which wilayah dided one y tomong the momentele de mare romum ? What doet CAPM pred podem for each stock should be early, the CAM prediction de ce fusto CAMOs not hold you to waithe. The mette CAM modeste situated c. What are the mean of the regression part that is reach stock complewer wanted tumand te best fignage your and he Wong of the comment between you can parte ant mit protrom. You are welcome to the founder redong the prime with free for the more and Western cotondom What can you condus from your was to par (b) of the band part of a problem to len we zeptat her pendant uns SA 7000 00 Stok 756 1000 1.44 32:40 Stock 1000 100 10250 D 1.000 While the content you and in parte The content you wld in partida de What can you come from date om wiwer forum(thewodne dhe Dirt You are welcome to you by redong with or wie amar man en die OA The nurmenta, mg O You can lovely OC The number would change but there would comes OD. They will not change ul Consider the following stock of which will pay a liquidating dividend one year from now and nothing in the interim. Assume the risk freeroll 4% and the market risk premium 7 What does the CAPM predict the expected return for each stock should be? b. Charly, the CAPM predictions are not allow acol expected returns to the CAPM does not hold you decide to investigate this father. To see what kind of mistakes the CAPM is making you decide to get a expected return onto the expected retum predicted by the CAPM What is the intercept and slope coefficient of this regression? e. What are the residuals of the regression in part? That is, for each stock compute the diference between the actual expected room and the best fringine given by the intercupt and slope coefficient in part() d. What is the sign of the correlation between the residuals you calculated in part(c) and market capitalization? . What can you conclude from your answers to part of the previous problem and part(d) of this problem about the relation between tms. market capitalization and return? (The results do not depend on the partie numbers in this problem. You are welcome to verify this for yourself by redoing the problems with another value for the market is premium, and by picking the stock bele and market capitalizations adonly) According to CAPM, the expected retum for Hock Round to four decimal place) According to CAPM. the expected retum for Sock B Round to four decimal places) According to CAPM the expected return for stock in (Round to four decimal places) an According to CAPM. The expected retum et stock Daround to four decimal poce) wit. Clenby the CAPM predictions we not equal to the actual expected resume te the CAPM does not hold you decide to investigate this tuttet. To see what we of mistakes the CAP is making you decide to get the act expected retur onto the expected return presicted by the CAPM What is the intercept and slope coufficient of this regression? The slope coefficient of the repression (Round to sx orcimal places) Chap The rest of this regressioni round to four dem What are the modus of the regression in part? That is for each come herence the adults and the singine given by the Internet and openingar Em For each compute the difference between the expected and the best thing the only the rest in slope contin bond to four des Acces Click to select your answer 154 Consider the foloang vokal of which wilayalading dress from now and thing in thermometers and then in What does the CAP pred the ed un formato be! Clear. CAP content cual to the lead return to the CAPM sh. You decide to vestigate the Town of the CAP. you do together What are there of the red by? That breach lock compute the forence been teacherpecudum and the best fringing by the terms and slope comfort in What can you conclude from your news to part of the womandport them about the relation between two ton? (The report on the scenesha them. You are welcome very later yourself by reling te problems with one counter Dentro premu, odbywarga sekitar mi morat apstrators and For each trick compute the recentes expected read the best things by the end oformin od to decimal process Martt Capitation Expected Liquidating Bete Residus of regressie Divided in Return 1000 0.02 1000 two ON 1.000 What the continued it and man The common sen mycket What can you conduction your photos and promotion between the motors probom You Wicona to wytworn with the used to the went to come best choice A The woman that, but there SA Con the wing wat of which wilayah dided one y tomong the momentele de mare romum ? What doet CAPM pred podem for each stock should be early, the CAM prediction de ce fusto CAMOs not hold you to waithe. The mette CAM modeste situated c. What are the mean of the regression part that is reach stock complewer wanted tumand te best fignage your and he Wong of the comment between you can parte ant mit protrom. You are welcome to the founder redong the prime with free for the more and Western cotondom What can you condus from your was to par (b) of the band part of a problem to len we zeptat her pendant uns SA 7000 00 Stok 756 1000 1.44 32:40 Stock 1000 100 10250 D 1.000 While the content you and in parte The content you wld in partida de What can you come from date om wiwer forum(thewodne dhe Dirt You are welcome to you by redong with or wie amar man en die OA The nurmenta, mg O You can lovely OC The number would change but there would comes OD. They will not change