You expect the risk-free rate (RFR) to be 3 percent and the market return to be 10 percent. You also have the following information about three stocks. STOCK Coca-Cola BETA 1.7 CURRENT PRICE 52.75 EXPECTED PRICE 57.00 EXPECTED DIVIDEND 1.11 What is the expected return for the stock?
You expect the risk-free rate (RFR) to be 3 percent and the market return to be 10 percent. You also have the following information about three stocks. STOCK Coca-Cola BETA 1.7 CURRENT PRICE 52.75 EXPECTED PRICE 57.00 EXPECTED DIVIDEND 1.11 What is the expected return for the stock?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 4P: An analyst has modeled the stock of a company using the Fama-French three-factor model. The market...
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You expect the risk-free rate (RFR) to be 3 percent and the market return to be 10 percent. You also have the following information about three stocks.
STOCK Coca-Cola
BETA 1.7
CURRENT PRICE 52.75
EXPECTED PRICE 57.00
EXPECTED DIVIDEND 1.11
What is the expected return for the stock?
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