Answer:
Stock B has a standard deviation of 14%. The portfolio contains 40% of stock A, and the correlation coefficient between the two stocks is -.23. A) 9.7% B)
Explanation:
Stock B has a standard deviation of 14%. The portfolio contains 40% of stock A, the portfolio contains 60% of stock B, and the correlation coefficient between the two stocks is -.23. A. 9.7% B. 12.2% C. 14% ... The standard deviation of return on investment A is .10, while the standard deviation of return on investment B is .05.
I believe that you forgot the options, but i think i know them.
So, one of then is that it employed more workers: true they did bring it. Another option is that they brought lower prices: true as well
another option is that they brought better quality products, and this is also sometimes true.
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The correct answer is : monopolies, which in any case would not be an advantage for the consumer.
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Answer:
$32.20
Explanation:
The computation of the value of the stock is shown below:
Dividend per share = $3
The Required rate of return = 15%
Return on equity = 13%
Dividend payout ratio = 60%
Based on the above information,
First we have to determine the growth rate which is
Growth rate = (1 - Div Payout ratio) × ROE
= (1 - 60%) × 13%
= 5.20%
Now the value of the stock is determined by using the Gordon model
= Last year dividend × (1 + growth rate) ÷ (Required rate of return - growth rate)
= $3 × (1 + 5.20%) ÷ (15% - 5.20%)
= $32.20
johnson & johnson corporation stock has a beta of 0.30. what is its expected return
