What is the formula for the required return on a stock? Multiple choice question. r = P0D1P0D1 + g r = D1P0D1P0 – g r = D1P0D1P0 + g r = D1gD1g + P0
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What is the formula for the required return on a stock?
r = P0D1P0D1 + g
r = D1P0D1P0 – g
r = D1P0D1P0 + g
r = D1gD1g + P0
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- Stock price in one year Current price of the stock Need help? Review these concept resources. Read About the Concept Rate your confidence to submit your answer. High Medium Lown the formula ke >= (D1/P0) + g, what does (D1/P0) represent? Select one: a. The expected capital gains yield from a common stock b. The interest payment from a bond c. The expected dividend yield from a common stock d. The dividend yield from a preferred stockAn ideal value-relevant attribute is one for which the correlation coefficient of the values of the attribute and the stock prices is Group of answer choices a. +2.0 b. zero c. +1.0 d. -1.0
- All else being equal, a(n) Blank______ in the stock's required return leads to a(n) Blank______ in the stock's price. Multiple choice question. increase, decrease increase, zero change decrease, zero change increase, increaseSuppose stock A's return is related to the market return by: RetA=0.6*Market Return + 0.04* (Market Return)² What is the change in stock A given a change in the market return? Suppose stock B's return is related to the market return by: RetB=0.6*Market Return What is the difference in returns between A and B if the market return is 5%? What is the difference if the market return is -5%?Question number 6
- What are the expected returns for stocks Y and Z under the conditions shown below? A0 0.04 k1 0.07 k2 0.05 by,1 0.5 by,2 1.3 bz,1 1.2 bz,2 0.9For part B, is it meant to be the expected return on the stock in all market conditions or should I be using the expected return depending on the market? e.g. instead of using 0.07 for each of the stocks, using 0.05, 0.06 and (0.04)Please make sure the answers are clear n easy to read.
- The slope of a regression line when the return on an individual stock's returns are regressed on the return on the market portfolio, would be: OAR BR-₁ B OC none of the answers listed here. ODO imcan someone explain with example and formulas and steps about how to solve for 3 stage supernormal growth in stock and how to find the pv and and all the p1 p2If put A has T = 0.5, X = 50, sigma = 0.2, and a price of 10, and put B has T = 0.5, X = 50, sigma = 0.2, and a price of 12, which put is written on a stock with a lower price (and why)?
