Question
you have assigned the following values to these three firms: US Bancorp. $44.25. $2.65. 7.40% 1.88 praxair. 77.50. 1.89. 20.50. 2.70 Eastman Kodak. 40.95. 2.00.
you have assigned the following values to these three firms: US Bancorp. $44.25. $2.65. 7.40% 1.88 praxair. 77.50. 1.89. 20.50. 2.70 Eastman Kodak. 40.95. 2.00. 6.50. 2.24
assume that the market portfolio will earn 11.40 percent and the risk free rate is 4.00 percent. compute the required return for each company using both CAPM and the constant growth model. US Bancorp required () % ()% Praxair required return ()% ()% Eastman Kodak required return ()% ()% . . . you hold the positions in the table below Advanced Micro Devices $16.00 , 491, 4.98 FedEx Corp. 145.00 , 82, 1.39 Microsoft. 30.00, 105, 0.94 Sara Lee Corp. 30.00, 197, 0.54 What is the beta of your portfolio? portfolio beta() if you expect the market to earn 14.00 percent and the risk free rate is 4.00 percent, what is the required return of the portfolio? Required return()%
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