Use the following information to answer this and previous questions. Suppose risk-free rate is 3%...
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Use the following information to answer this and previous questions. Suppose risk-free rate is 3% today. The expected return from a market portfolio (Rm) is 9%. The beta of HCSH is 1.1. HCSH's most current dividend (D) is $1.00, and the expected long- term growth rate of dividends is 6%. Show the price and RRR of HCSH stock. The intrinsic value of the stock is Select one: O a. 29.44 O b. 16.06 O C. -17.87 O d. 15.36 O e. 16.85 Use the following information to answer this and next questions. Suppose risk-free rate is 3% today. The expected return from a market portfolio (Rm)) is 9%. The beta of HCSH is 1.1. HCSH's most current dividend (D) is $1.00, and the expected long- term growth rate of dividends is 6%. Show the price and RRR of HCSH stock. The RRR is Select one: o a. 9.6% O b. 3% o c. 6.6% O d. 12.9% o e. 12.3% Use the following information (about HCSH stock) to answer this and previous questions. States of Economy Probability Return Boom 20% Average 10% Bust 0% The standard deviation of return is 3 Select one: a. 4.47% b. 6.25% O c. 10.00% O d. 7.75% O e. 0.00% Use the following information (about HCSH stock) to answer this and next questions. States of Economy Probability Return Boom .3 20% Average .4 10% Bust 0% The expected rate of return is Select one: O a. 11.5% o b. 12.0% O c. 10.0% O d. 25.0% o e. None of the above Here is an asset in isolation: Stock A: Expected Return = 15% and Standard Deviation = 5%. Stock B: Expected Return = 20% and Standard Deviation = 6%. Which stock is riskier? Select one: o a. A ob.
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