The realized returns for the market and Johnson Drugs for the last four years are given...
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The realized returns for the market and Johnson Drugs for the last four years are given below: Year 1 2 3 4 Market 10% 15% -5% 0% Johnson 5% 0% 14% 10% An average stock has a required return of 12 percent, and the market risk premium is 4 percent. If Johnson's expected rate of return is 8 percent, what is the difference between Johnson's expected and required rates of return? The realized returns for the market and Johnson Drugs for the last four years are given below: Year 1 2 3 4 Market 10% 15% -5% 0% Johnson 5% 0% 14% 10% An average stock has a required return of 12 percent, and the market risk premium is 4 percent. If Johnson's expected rate of return is 8 percent, what is the difference between Johnson's expected and required rates of return?
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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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