The expected return on the market is greater than the risk-free rate, which is greater than zero. Based on the information in the table and in this paragraph, which stock has the highest expected return? Geometric average Arithmetic average Stock annual return over annual return over Share price Beta Expected standard the past 10 years the past 10 years deviation of returns A 13.00% 6.00% $42.00 1.31 23.00% B -25.00% -19.00% $66.00 1.30 54.00% с -26.00% -21.00% $72.00 1.70 43.00% D 10.00% 29.00% $33.00 0.54 41.00% E -9.00% -4.00% $50.00 1.98 31.00% OOOOO Stock C Stock B Stock D Stock A Stock E
The expected return on the market is greater than the risk-free rate, which is greater than zero. Based on the information in the table and in this paragraph, which stock has the highest expected return? Geometric average Arithmetic average Stock annual return over annual return over Share price Beta Expected standard the past 10 years the past 10 years deviation of returns A 13.00% 6.00% $42.00 1.31 23.00% B -25.00% -19.00% $66.00 1.30 54.00% с -26.00% -21.00% $72.00 1.70 43.00% D 10.00% 29.00% $33.00 0.54 41.00% E -9.00% -4.00% $50.00 1.98 31.00% OOOOO Stock C Stock B Stock D Stock A Stock E
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 8P: A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per...
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