Question: 2. Based on the following information calculate the expected return and standard deviation for the two stocks: 3. How should the price of a stock

2. Based on the following information calculate the expected return and

2. Based on the following information calculate the expected return and standard deviation for the two stocks: 3. How should the price of a stock change when it goes ex-dividend? 4. Suppose stock in Gamma Air Freight has a beta of 1.25. the market risk premium is 7% and the risk free rate is 6%. Alpha's last dividend was $2 per share and the dividend is expected to grow at 8% indefinitely. The stock currently sells for $30. What is Gamma's cost of equity capital

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