Question
You consider buying a share of stock at a price of $15. The stock is expected to pay a dividend of $.90 next year, and
You consider buying a share of stock at a price of $15. The stock is expected to pay a dividend of $.90 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $18. The stock's beta is 1.1, rf is 12%, and E[rm] = 22%. What is the stock's abnormal return?
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Financial Markets And Institutions An Introduction To Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett
3rd Edition
0073250937, 9780073250939
