Question: Expected return of Security Con PARTB Security Als currently trading at 525 The CIBC analyst han estimated that the price of Security A in one



Expected return of Security Con PARTB Security Als currently trading at 525 The CIBC analyst han estimated that the price of Security A in one year can teach 530,528, or $25 will probabilities 25% 50% and 25% respectively Calculate the estimated one year retum for security A (express your answer as a percentage to 2 decimal places and do not round intermediate stapo) Estimated one year return for security Als PART te the following three terms Over Price Under Pricedorary Priced to dete scurty, and below. Security A Security Bus Security is Question 34 8 points Save Answer A security analyst at CIBC securies has summarized information on three firms and the market as follows. The risk tree rate is 4%, the market risk premium (E(Rm) - R) is 6% and the standard deviation of returns of the market portfolio is 25% Security A Security B Security C Correlation with market portfolio 070 0.75 0.55 Standard deviation of security returns 35% 50% Estimated Security Returns See partB 13% 10% 50 PARTA Determine the CAPM expected or required tate of return for securities A, B and C using the information given above, and enter your answer below as a percentage to two decimal places Expected retum of Security Als Expected return of Security Expected return of Security Cis PARTB Security Ais currently trading at $25. The CIBC analyst has estimated that the price of Security A in one year can reach $30, $25, or $25 with probabilities 25% 50% and 25% respectively Calculate the estimated one year return for security A (express your answer as a percentage to 2 decimal places and do not round intermediate stopu) Estimated one year return for security Als PART Use the following three terms-> Over Priced under Pricedor Fairy Priced to describe security AB and C below Security AS Security is Security
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