A stock has beta of 1.5 and expected return of 0.08. Its expected growth rate of dividends is 0.02. If the risk free rat

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answerhappygod
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A stock has beta of 1.5 and expected return of 0.08. Its expected growth rate of dividends is 0.02. If the risk free rat

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A stock has beta of 1.5 and expected return of 0.08. Its
expected growth rate of dividends is 0.02. If the risk free rate of
interest falls by 1 percentage point the percentage change in the
stock price is ?
Answer is -7.7 %
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