Question: Use the following for questions 23 through 25: E (R) 20% SML 5% 1.5 B 23. What is the Expected Return for a security with

Use the following for questions 23 through 25: E (R) 20% SML 5% 1.5 B 23. What is the Expected Return for a security with a Beta of 1.25? a. 15.00% b. 17.50% c. 20.00% 24. If there were an asset with beta of 1.5, at what expected return would you consider the asset undervalued? a. 22.00% b: 20.00% c. 18.00% 25. If you had a stock with a Beta of 1.5 and it paid you a $3 in dividends, and you expected the price to be $81 in a year, what would you pay for the stock today? $70.00 b. $84.00 c. $100.80

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