- Q4 An Analyst Gathered The Following Information For A Stock And Market Parameters Stock Beta 1 04 Expected Return 1 (14.99 KiB) Viewed 27 times
Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 1.04; expected return
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Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 1.04; expected return
Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 1.04; expected return on the Market = 9.20%; expected return on T-bills = 5.00%; current stock Price = $7.41; expected stock price in one year = $10.56, expected dividend payment next year = $4.51. Calculate the La) Required return for this stock (1 point): b) Expected return for this stock (1 point): Q5) The market risk premium for next period is 8.50% and the risk-free rate is 3.30%. Stock Z has a beta of 1.13 and an expected return of 10.10%. What is the a) Market's reward-to-risk ratio? (1 point): b) Stock Z's reward-to-risk ratio (1 point):