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Author Question: Analysts state that the required return from Plummet Soft Drinks stock is 25%, and the returns from ... (Read 70 times)

naturalchemist

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  • Posts: 542
on: Apr 25, 2021

Question 1

Altria Group Inc. (ticker: MO on NYSE) is an American manufacturer of tobacco products. Selected Financial information for Altria is provided in the table below. What is the expected return on shares of Altria using the SML?

AssetExpected ReturnBeta
Altria​0.5
Risk Free Asset5%0
Market Portfolio10%1

◦ 5.0%
◦ 7.5%
◦ 10.0%
◦ 12.5%
◦ 15%

Question 2

Analysts state that the required return from Plummet Soft Drinks stock is 25%, and the returns from Treasury bills and the market portfolio are 4% and 20%, respectively. What is Plummet's beta?
◦ 0.79
◦ 1.00
◦ 0.05
◦ 1.31
◦ 1.13
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by naturalchemist on Apr 25, 2021

wuly

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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naturalchemist

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

Sarahjh

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Reply 3 on: Yesterday
Gracias!

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