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mooncalled mooncalled
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4 months ago
The current price of Stock Y is $12. It is expected that the stock will pay an annual dividend of $0.60 and sell for $13.50 in one year. The risk-free rate is 6%. The expected return on the market portfolio is 14% with a standard deviation of 17%. Assume the market is in equilibrium. What is current rate of return on Stock Y?

▸ 6.50%

▸ 12.50%

▸ 17.50%

▸ 8.00%
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
Author:
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damien03damien03
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4 months ago
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mooncalled Author
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4 months ago
Smart ... Thanks!
Evolution
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Just got PERFECT on my quiz
klyn
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2 hours ago
Good timing, thanks!
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