CORP FIN (LL)+CONNECT+PROCTORIO+180
12th Edition
ISBN: 9781266120343
Author: Ross
Publisher: MCG
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Chapter 12, Problem 1QAP
Summary Introduction
Adequate information:
Expected GNP growth = 3.5%
Expected interest rate = 2.9%
Beta on change in GNP (ßGNP) = 1.3
Beta on change in interest rate (ßr) = -0.47
Expected
Actual GNP growth = 3.2%
Actual interest rate = 2.7%
To compute: The revised expected return.
Introduction: Expected return simply refers to the return that is anticipated on the investment.
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D. (1) Consider the following cash inflows of a financial product. Given that the market
interest rate is 12%, what price would you pay for these cash flows?
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Chapter 12 Solutions
CORP FIN (LL)+CONNECT+PROCTORIO+180
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