Question: need help with homework. please show work 9.What is the best equity to invest in? .XX d. Data provided is not enough 10-What is the
9.What is the best equity to invest in? .XX d. Data provided is not enough 10-What is the expected return of a portfolio that has 50% XX, 25% ZZ and 25% YY? a.-2.775% b. 6.325% . 11.885% d. None of the above Each) 11-What is the required rate of return (Rs) of a stock (WQ) given the following inputs: beta 0-08, market return (RM)-8%, risk-free rate (RRF)-3%? a. 490 b. 7% c.11% d. None of the above 12-If WQ pays S3 in dividends (Do) and has a constant growth of 390, then what is wors intrinsic value? a. $43.75 b. S66.75 c. $77.25 d. None of the above 13-If WQ is currently traded for S50, would you long or short the stock? a. Long b. Short c. None since there is no investment opportunity at $50 market price 14-If WQ maintains the same performance (Do- $3 and constant growth of 3%) while the market return drops to 7% and the risk- free rate increases to 4%, then what is the new intrinsic value of WQ? a. $80.24 b. $90.88 c. $102.12 d. None of the above 15-Given the new market conditions (Question#9), would you long or short the stock if WQ is traded for $100? a. Long b. Short c. None since there is no investment opportunity at $100 market price
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
