The stock of Business Adventures sells for $50 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: [(boom $2.00 dividend $58 stock price),(normal economy $2 dividend and $54 stock price) (recession $0.50 dividend and $39.5 stock price)] Calculate the expected holding period return and standard deviation of the holding period return, the boom and normal economy states are 40% likely to happen. calculate the expected return and standard deviation of a portfolio invested half in business adventures and half is treasury bill. The return on bill is 5% Please answer fast i give you upvote.
The stock of Business Adventures sells for $50 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: [(boom $2.00 dividend $58 stock price),(normal economy $2 dividend and $54 stock price) (recession $0.50 dividend and $39.5 stock price)] Calculate the expected holding period return and standard deviation of the holding period return, the boom and normal economy states are 40% likely to happen. calculate the expected return and standard deviation of a portfolio invested half in business adventures and half is treasury bill. The return on bill is 5% Please answer fast i give you upvote.
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 18MC
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The stock of Business Adventures sells for $50 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows:
[(boom $2.00 dividend $58 stock price),(normal economy $2 dividend and $54 stock price) (recession $0.50 dividend and $39.5 stock price)]
Calculate the expected holding period return and standard deviation of the holding period return, the boom and normal economy states are 40% likely to happen.
calculate the expected return and standard deviation of a portfolio invested half in business adventures and half is treasury bill. The return on bill is 5%
Please answer fast i give you upvote.
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