You expect the risk-free rate (RFR) to be 3 percent and the market return to be 10 percent. You also have the following information about three stocks. STOCK Coca-Cola BETA 1.7 CURRENT PRICE 52.75 EXPECTED PRICE 57.00 EXPECTED DIVIDEND 1.11 What is the expected return for the stock?
You expect the risk-free rate (RFR) to be 3 percent and the market return to be 10 percent. You also have the following information about three stocks. STOCK Coca-Cola BETA 1.7 CURRENT PRICE 52.75 EXPECTED PRICE 57.00 EXPECTED DIVIDEND 1.11 What is the expected return for the stock?
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 14PROB
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You expect the risk-free rate (RFR) to be 3 percent and the market return to be 10 percent. You also have the following information about three stocks.
STOCK Coca-Cola
BETA 1.7
CURRENT PRICE 52.75
EXPECTED PRICE 57.00
EXPECTED DIVIDEND 1.11
What is the expected return for the stock?
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