Consider $10m invested in a stock. The annual volatility of the rate of return is 25%. Assuming that the return is IID and normally distributed with u=0. a. What is the 99% 1-day VAR? b. What is the 95% 1-day VAR? C. What is the 95% one-week VAR?

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A: Cost of equity refers to the cost incurred by the company for issuing new equity. When a company use…

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A: According to CAPM model: ke=rf+beta×market risk premiumwhere, rf=risk free rate according to gordon…

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A: Formula: Current stock = Expected dividend/(Required rate - Growth rate)

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A: Stock price (S) = $95 r = 7% T = 6 months = 0.5 years

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A: Computation:

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A:

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A: In this we have to use capital assets pricing model to get market rate of return.

Q: he common stock of PG paid RM1.32 in dividends last year. Dividends are expected to grow at an 8…

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A: Initial price = $40 Expected return =16% per annum Volatility = 20% per annum

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A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

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A:

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Q: need help

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Q: stock's

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Q: American

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Q: For a stock, you are given: i. The current stock price is 90 ii. The stock pays dividends…

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