Answer:
a. The stock's price one year from now is expected to be 5% above the current price.
Explanation:
Under gordon model:
If we calculate the value of the stock for the year after that:
to calculate the value of the increase we divide next year over current year.
We have demostrate that next year stock should increase by 1 + growth so statement c is correct.
Answer:
2.21
Explanation:
Portfolio beta = Respective beta*Respective weight
<em>Beta of market=1;Beta of risk-free assets=0</em>
1.28 = (0.25*0) + (0.31*1) + (0.44*Beta of Stock B)
1.28 = 0 + 0.31 + 0.44*Beta of Stock B
1.28 - 0.31 = 0.44*Beta of Stock B
Beta of Stock B = 0.97/0.44
Beta of Stock B = 2.204545454545455
Beta of Stock B = 2.21
<span>the invention of graphical Web browsing.</span>
Answer: D. U.S. Treasury securities and Discount loans to banks.
Explanation: When examining the Fed's balance sheet, in most periods, the two most important assets are U.S. Treasury securities and Discount loans to banks. The Fed's balance sheet balance sheet includes a large number of distinct assets and liabilities containing a great deal of information about the scale and scope of its operations. Of these assets the U.S. Treasury securities and Discount loans to banks are paramount.
U.S Treasury securities are such as bills, notes and bonds issued by the U.S. government viewed as having virtually no credit risk. As such, they are debt obligations of the U.S. government.
Discount loans to banks are direct short term loans provided to banks by the Fed to meet temporary shortages of liquidity caused by internal or external disruptions.
