X Lu McGraw Hill Connect: BUSI 530 X Question 1 - Homework: Risk, Re x G Google + nheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fims.mheducation.com%252Fmghmiddleware%252Fmheproduct orldwi... Shalimar Weather -... G Google https://searchsafe.n.. New Tab Bookmarks k: Risk, Return, and Opportunity Cost of Capital A... () Saved He Top hedge fund manager Sally Buffit believes that a stock with the same market risk as the S&P 500 will sell at year-end at a price of $54. The stock will pay a dividend at year-end of $3.00. Assume that risk-free Treasury securities currently offer an interest rate of 2.4%. Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2017 (figures in percent per year) are as follows. Average Premium (Extra return Average Annual versus Treasury Portfolio Rate of Return (9) bills ) () Treasury bills 3 . 8 Treasury bonds 5. 3 1. 5 Common stocks 11 . 5 7.7 a. What is the discount rate on the stock? (Enter your answer as a percent rounded to 2 decimal places.) Discount rate %