You expect the price of Intel stock to be $52.20 next year. The company forecasts to pay

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You expect the price of Intel stock to be $52.20 next year. The company forecasts to pay a dividend of $2.00 next year.

The stock has a beta of 1.1. The risk-free rate is 4% per year, and the return on the market portfolio is 12%. According to the CAPM, what is the fair price of Intel stock?

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Intermediate Microeconomics

ISBN: 978-0393123968

9th edition

Authors: Hal R. Varian

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Posted Date: Mar 09, 2024 02:50 AM

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You expect the price of Intel stock to be $52.20 next year. The company forecasts to pay

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To calculate the fair price of Intel stock using the CAPM Capital Asset Pricing Mo... View the full answer

Intermediate Microeconomics

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