Question: help me please i onlu need c-1 c-2 and c-3 Suppose the yield on short-term government securities (perceived to be risk-free) is about 4%. Suppose

Suppose the yield on short-term government securities (perceived to be risk-free) is about 4%. Suppose also that the expected return required by the market for a portfolio with a beta of 10 is 80% According to the capital asset pricing modet Required: a. What is the expected return on the market portfolio? (Round your answer to 1 decimal place.) Expected ente of return b. What would be the expected return on a zero-beta stock? Expected rate of return Based on your internal analysis, suppose you consider buying a share of stock at a price of $70 The stock is expected to pay a dividend of $9 next year and you expect to sell the stock then for $73. The stock risk has been evaluated at B-0.5. c-1. Using CAPM, calculate the expected rate of return for a stock with a = -0.5. (Round your answer to 1 decimal place.) Fair rate of return Based on your internal analysis, suppose you consider buying a share of stock at a price of $70. The stock is expected to pay a dividend of $9 next year and you expect to sell the stock then for $73. The stock risk has been evaluated at - -0.5. c.1. Using CAPM, calculate the expected rate of return for a stock with a B = -0.5. (Round your answer to 1 decimal place.) Fair rate of return c-2. Based on your internal analysis, what is expected rate of return, using the expected price and dividend for next year. (Round your answer to 2 decimal places.) Expected rate of return 96 c-3. Is the stock overpriced or underpriced? Overpriced Underpriced
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