A stock is currently selling for $90.98 and is expected to sell for $108.98 in 1 year. If the company pays a dividend of $2.54 what is the stock's HPR? QUESTION 2 A stock has a beta of 0.32. The risk free rate is 1.165% and the market risk premium is 5%. What is the fair return on the stock?
A stock is currently selling for $90.98 and is expected to sell for $108.98 in 1 year. If the company pays a dividend of $2.54 what is the stock's HPR? QUESTION 2 A stock has a beta of 0.32. The risk free rate is 1.165% and the market risk premium is 5%. What is the fair return on the stock?
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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Transcribed Image Text:A stock is currently selling for $90.98 and is expected to sell for $108.98 in 1 year. If the company pays a dividend of $2.54 what is the stock's
HPR?
QUESTION 2
A stock has a beta of 0.32. The risk free rate is 1.165% and the market risk premium is 5%. What is the fair return on the stock?
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