An analyst gathered the following information regarding two stocks: Stock A Stock B Beta 0.7 1.1 Current
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Question:
An analyst gathered the following information regarding two stocks:
Stock A | Stock B | |
---|---|---|
Beta | 0.7 | 1.1 |
Current market price | $20 | $35 |
Expected dividend | $1 | $1 |
Expected price at year end | $23 | $37 |
Assuming a risk‐free rate of 5% and the expected market return of 12%, which of the following statements is most accurate?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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