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4. Use the information given below to determine if the following securities are correctly priced, assuming that R;= 5% and Rm = 10%. A B Current price (P,) $50 80 100 Next year price (P) $54 84 120 Dividend (D,) $2 4 5 Beta 0.8 1.2 3.0 If you were offered a 20-30-50 portfolio of the above securities as a package deal, will you take it? Why?

4. Use the information given below to determine if the following securities are correctly priced, assuming that R;= 5% and Rm = 10%. A B Current price (P,) $50 80 100 Next year price (P) $54 84 120 Dividend (D,) $2 4 5 Beta 0.8 1.2 3.0 If you were offered a 20-30-50 portfolio of the above securities as a package deal, will you take it? Why?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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4. Use the information given below to determine if the following securities are correctly priced, assuming that R = 5% and Rm = 10%. A В Current price (Po) $50 80 100 Next year price (P) $54 84 120 Dividend (D,) $2 4 5 Beta 0.8 1.2 3.0 If you were offered a 20-30-50 portfolio of the above securities as a package deal, will you take it? Why?
Transcribed Image Text:4. Use the information given below to determine if the following securities are correctly priced, assuming that R = 5% and Rm = 10%. A В Current price (Po) $50 80 100 Next year price (P) $54 84 120 Dividend (D,) $2 4 5 Beta 0.8 1.2 3.0 If you were offered a 20-30-50 portfolio of the above securities as a package deal, will you take it? Why?
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