k-free rate of 8%, consider the following data: Required return (%) 12 Stock Beta 0.8 A B 1.2 13 C 0.6 10 sume that an analyst, using fundamental analysis. Which stock would be recommende - purchase?

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A: Arithmetic mean = sum of all return/ n Where n = 4 Geometric mean =…

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A: Required rate of return = risk free rate  +(beta * market risk premium)

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A: Given, rRf = 5% rM = 10% rA = 8%

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A: Rate of return is the return on investment to the investor.

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A: To calculate the required return we will use the below formula   Required rate of return = Risk free…

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A: Introduction : Risk free rate =4% Market risk  premium = 5% Beta coefficient =2.0 Using CAPM…

Q: Company A has a beta of 0.70, while Company B's beta is 0.95. The required return on the stock…

A: A Beta = 0.70 B Beta = 0.95 Required return on market = 11% Risk free rate = 4.25%

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A: Given the following information: Earnings per share: $3 per share Market price of share: $25 Beta:…

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A: The given question can be solved using capital asset pricing model (CAPM)

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A: Expected return of Ramsay = 12% Expected return of Gordon = 13% Rf = 5% Rm = 11%

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A: Hi There, Thanks for posting the question. As per Q&A guidelines, the solution for first three…

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A: Share Price: The price of a share is an indication of its present value to buyers and sellers.…

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A: Required rate of return = risk free rate  +beta * (market return - risk free rate)

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A: Following details are given in the question regarding Spider Corp: Beta = 1.7 Risk free rate = 1.6%…

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A: Stock beta = 0.90 Risk free rate = 5.5% Market return = 10%

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A: Introduction: Retained earnings are the revenues or profits that an organization has produced to…

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A: Systematic risk is the portion of the overall risk induced by factors outside the control of a…

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A: In this we have to calculate expected return using CAPM model.

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A: a) To find out which stock is riskier, should calculate Coefficient of Variation.  Coefficient of…

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A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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A: Calculation of required return on stock A change: Answer: Required return on stock A is 2.0%

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A: As per our policy we only answer three subparts of any questions:   Information Provided: Risk-free…

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A: The reward-to-risk ratio implies the surplus return over risk-free rate earned by the investor for…

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A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

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A: First, we will calculate the expected return of A and B, and thereafter we can apply the formula for…

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A: Expected return on stock R = 14% Standard deviation on stock R = 20%  The beta coefficient on stock…

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A: We will answer first three subparts, for the remaining subparts, kindly resubmit the question again…

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A: In the given question we require to calculate the cost of equity for B24&co

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