Question
You expect the price of Intel stock to be $52.20 next year. The company forecasts to pay a dividend of $2.00 next year. The stock
You expect the price of Intel stock to be $52.20 next year. The company forecasts to pay a dividend of $2.00 next year.
The stock has a beta of 1.1. The risk-free rate is 4% per year, and the return on the market portfolio is 12%. According to the CAPM, what is the fair price of Intel stock?
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
