Capital Asset Pricing Model Assignment | Homework For You
May 28th, 2020
19 The expected return on the market portfolio is 19%. The risk free rate is 12%. The expected return on SEA Comp. beta of SDA Corp. common stock is 140. Within the context of the capital asset pricing model, (8 01:19:45 Multiple Choice
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O SDA stock is fairly priced
SDA stock’s alpha is 3.8% o
O SDA Corp. stock’s alpha is – 80%
You consider buying a share of stock at a price of $20. The stock is expected to pay a dividend of $120 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $23. The stock’s beta is 07. rfis 9%, and Erel – 19% What is the stock’s abnormal return? 20 (2 ots) Multiple Choice o О 6% o o %. ОО% 20 of 22 !! Get Finance homework help today