The market expected return is 8 with a standard deviation of 18 The risk free rate is 3 5 Security XYZ has just paid a dividend of $5 and has a current price of $80 What is the beta of Security XYZ if its dividend is expected to grow at 2 per year indefinitely ...

Computation of the Beta of the stock Using CAPM Using Dividend model Expected return D ...

The market expected return is 8% with a standard deviation of 18%. The risk free rate is

Question:

The market is 8% with a standard deviation of 18%. The risk free rate is 3.5%. Security XYZ has just paid a of $5 and has a current price of $80. What is the beta of Security XYZ if its is expected to grow at 2% per year indefinitely?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...