Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. suppose you consider buying a share of stock at a

Suppose you consider buying a share of stock at a price of $30. The stock...

90.2K

Verified Solution

Question

Finance

Suppose you consider buying a share of stock at a price of $30. The stock is expected to pay a dividend of $7 next year and to sell then for $31. The stock risk has been evaluated at = 0.5. c-1. Using the SML, calculate the fair rate of return for a stock with a = 0.5. (Round your answer to 1 decimal place.)

Fair rate of Return = _____%

Expected Rate of Return = _____%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

How do you understand racism and/or prejudice to have impacted your lived experience? What do you...

Psychology
Q

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been...

Accounting
Q

3 Do interferons target infected cells or noninfected cells Why Answer

Biology
Q

Consider the universal set U potato chip fish TV hat hammer radio cell phone pineapple...

Basic Math
Q

Graph f(x) = log5 (x) + 4 using transformations by first graphing the basic logarithmicfunction...

Basic Math
Q

Find a so that the point 1 1 is on the graph of f x...

Algebra
Q

Check Required information [The following information applies to the questions displayed below.] Adger...

Accounting
Q

Exercise 25-03 Hillsong Inc, manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at...

Accounting
Q

1. What are the "positives" of developing standards? Negatives? 2.What types of standards or expectations...

Accounting
Q

Please read carefully this tax accounting problem and answer 4 questions below: Petrel Corporation...

Accounting
Q

Oriole Inc. issued $5.0 million of 9-year, 796, convertible bonds on June 1, 2017 at...

Accounting
Q

There ers Following tities ecured during the first month of Babara Schmidt's new hair a...

Accounting