In Problems 21 and 23 below, assume the risk-free rate is 8% and the expected rate of return on the market is 18%. Use t

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In Problems 21 and 23 below, assume the risk-free rate is 8% and the expected rate of return on the market is 18%. Use t

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In Problems 21 And 23 Below Assume The Risk Free Rate Is 8 And The Expected Rate Of Return On The Market Is 18 Use T 1
In Problems 21 And 23 Below Assume The Risk Free Rate Is 8 And The Expected Rate Of Return On The Market Is 18 Use T 1 (36.39 KiB) Viewed 26 times
In Problems 21 and 23 below, assume the risk-free rate is 8% and the expected rate of return on the market is 18%. Use the SML of the simple (one-factor) CAPM to answer these questions. 21. A share of stock is now selling for $100. It will pay a dividend of $9 per share at the end of the year. Its beta is 1. What must investor expect the stock to sell for at the end of the year? 23. A stock has an expected return of 6%. What is its beta?
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