The increase in stock risk has lowered its value by 16.09%.
<h3>What does market price mean?</h3>
- The price at which a good or service can currently be bought or sold is known as the market price.
- The forces of supply and demand determine the market price of a good or service; the price at which the quantity supplied and demanded are equal is the market price.
<h3>What is current price and market price?</h3>
- Market value is another name for the current price. It is the last traded price for a share of stock or any other security.
According to the question:
- If the security's correlation coefficient with the market portfolio doubles (with all other variables such as variances unchanged), then beta, and therefore the risk premium, will also double. The current risk premium is: 13% - 5% = 8%
The new risk premium would be 16%, and the new discount rate for the security would be: 16% + 5% = 21%
If the stock pays a constant perpetual dividend, then we know from the original data that the dividend (D) must satisfy the equation for the present value of a perpetuity:
Price = Dividend/Discount rate.
26 = D/0.13.
D =26 x 0.13.
D = $3.38.
At the new discount rate of 21%, the stock would be worth:
$3.38/0.21.
= $16.09.
The increase in stock risk has lowered its value by 16.09%.
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Answer:
We can infer from the graph, that about two thirds (around 60%) of the world's population lived in Asia in 2008.
Asia is by far the most populated continent in the world. The two most populous countries of the globe are located in Asia: India, and China, each with over 1 billion people.
Answer:
In a static storage area each product is assigned a specific area, whereas in dynamic storage, product locations and fluid and as such are subject to change.
Answer:
Topeka
The City of Topeka, located 60 miles west of KC Metro area, serves as both the state capital of Kansas and the county seat of Shawnee County, Kansas. Topeka is the fifth largest city in Kansas behind Wichita, Overland Park, Kansas City, and Olathe. The land within the City covers about 62.67 square miles.
That would be an example of traditional economy.
