Question
You consider buying a share of stock at a price of $18. The stock is expected to pay a dividend of $1.32 next year, and
You consider buying a share of stock at a price of $18. The stock is expected to pay a dividend of $1.32 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $21. The stock's beta is 1.2, rf is 7%, and E[rm] = 17%. What is the stock's abnormal return?
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CFP Board Financial Planning Competency Handbook
Authors: CFP Board
2nd Edition
1119094968, 978-1119094968
