If the expected rate of return of the market portfolio is 15 percent and a stock with a beta of 1 0 pays a dividend yield of 4 percent, what must the market believe is the expected rate of price appreciation on that stock ...

If the expected rate of return of the market portfolio is 15 percent and a stock with

Question:

If the expected rate of return of the market is 15 percent and a stock with a beta of 1.0 pays a yield of 4 percent, what must the market believe is the expected rate of price appreciation on that stock?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...