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Author Question: Warren has a portfolio with three stocks as shown in the table. What is the beta of Warren's ... (Read 93 times)

sjones

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Warren has a portfolio with three stocks as shown in the table. What is the beta of Warren's portfolio?
 
  Stock Required Return Portfolio Weight Beta
  Raymond's 6.75 0.4 0.50
  Keller Industries 11.43 0.35 1.50
  Huron Power 9.27 0.25 1.05
 
  A) 0.775
  B) 0.988
  C) 1.017
  D) 1.340
  E) 1.505

Question 2

In the Gordon model, the value of the common stock is the:
 
  A) Net value of all assets which are liquidated for their exact accounting value.
  B) Actual amount each common stockholder would expect to receive should the firm's assets be liquidated at fair market value.
  C) Present value of a non-growing dividend stream.
  D) Present value of a constant, growing dividend stream.



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frankwu0507

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Answer to Question 1

B

Answer to Question 2

D




sjones

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Reply 2 on: Jul 10, 2018
Excellent


Liamb2179

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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