Answer:
2.85
Explanation:
U.S. Treasury bills are a risk-free asset, and thus have a beta of zero. Since Stock A has a risk-level equivalent to that of the overall market, its beta is one. Therefore, the beta for Stock B can be found by:
The beta of Stock B is 2.85.
Answer:
$66.9725
Explanation:
Data provided in the question:
Dividend:
D1 = $1.20
D2 = $1.40
D3 = $1.55
Expected future price, P3 = $82
Required return = 8.9 percent = 0.089
Now,
Stock price today = Present value of dividends and the future value
Stock price today =
or
Stock price today = 1.1019 + 1.1805 + 1.2001 + 63.49
or
Stock price today = $66.9725