Page 1 of 1
You are thinking of buying a stock priced at $97 per share. Assume that the risk-free rate is about 4.7% and the market
Posted: Sun May 08, 2022 3:56 pm
by answerhappygod
- You Are Thinking Of Buying A Stock Priced At 97 Per Share Assume That The Risk Free Rate Is About 4 7 And The Market 1 (51.54 KiB) Viewed 28 times
You are thinking of buying a stock priced at $97 per share. Assume that the risk-free rate is about 4.7% and the market risk premium is 5.7%. If you think the stock will rise to $123 per share by the end of the year, at which time it will pay a $2.22 dividend, what beta would it need to have for this expectation to be consistent with the CAPM? . The beta is (Round to two decimal places.)