Question
You believe that a stock is fairly priced according to the CAPM. The stock has a beta of 3.7 when the market risk premium is
You believe that a stock is fairly priced according to the CAPM. The stock has a beta of 3.7 when the market risk premium is 5.4% and the risk free rate is 1.4%. If the stock's dividend yield is 4.8% what is the stock's expected capital gain yield?
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Get StartedRecommended Textbook for
International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
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