The current stock price of FBFB is $160. Analysts have done research and figured that the beta

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The current stock price of FBFB is $160. Analysts have done research and figured that the beta of FBFB is 0.77. The one-year risk-free rate is 3%, and the expected return on the market index for the coming year is 8%. Suppose that CAPM holds.

The expected price of FBFB in one year is closest to?

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Intermediate Financial Management

ISBN: 978-1111530266

11th edition

Authors: Eugene F. Brigham, Phillip R. Daves

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Posted Date: Jun 14, 2023 04:51 AM

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The current stock price of FBFB is $160. Analysts have done research and figured that the beta

Question:

Expert Answer:

Expected price Current price 1 Riskfree rate Beta Expected return on market index Riskfree rate 160 1 003 077 008 003 160 1 008 17120 The beta of 077 ... View the full answer

Intermediate Financial Management

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