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xz_007 [3.2K]
3 years ago
6

A stock with a beta of 1.2 has an expected rate of return of 16%. If the market return this year turns out to be 10 percentage p

oints below expectations, what is your best guess as to the rate of return on the stock?
Business
1 answer:
KiRa [710]3 years ago
7 0

Answer:

rate of return on the stock is 4%

Explanation:

given data

stock beta = 1.2

expected rate of return = 16%

market return = 10%

to find out

rate of return on the stock

solution

we get here rate of return on the stock hat is express as

rate of return on the stock = expected rate of return - ( stock beta × market return )   ...........................1

put here value we get

rate of return on the stock = 16 % - ( 1.2 × 10% )

rate of return on the stock = 0.16 - ( 1.2 × 0.10 )

rate of return on the stock = 0.16 - 0.12

rate of return on the stock = 0.04

rate of return on the stock is 4%

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Answer:

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Three corners markets paid an annual dividend of $1.37 a share last month. today, the company announced that future dividends wi
nikklg [1K]
Given 
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   2.8 % increase 
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The answer is $1.57 to purchase one share of this stock today.</span>
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Constructive criticism means:
MrRissso [65]
Feedback with the intention to help by listing reasonable arguements
8 0
4 years ago
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&gt;Leland pays premiums of $5,000 for an insurance policy in the face amount of $25,000 upon the life of Caleb and subsequently
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Answer:

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