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Author Question: You have been asked to analyze two stocks, Stock A and Stock B. The beta of stock A is 1.2, and the ... (Read 34 times)

RYAN BANYAN

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on: Apr 25, 2021

Question 1

XYZ Corp has an expected return of 16%. If the risk free rate is 4.5% and the return for the market is 20%, calculate the Beta for XYZ.
◦ 1.35
◦ 0.86
◦ 0.74
◦ 1.12
◦ 0.95

Question 2

You have been asked to analyze two stocks, Stock A and Stock B. The beta of stock A is 1.2, and the beta of stock B is 0.8. The expected return on stock A is 13.5%, the expected return on stock B is 11.0% and the risk-free rate is 7%. We also know that stock A is fairly priced. Which of the following regarding Stock B must be TRUE?
◦ The expected return on stock A is too high.
◦ Stock B is also fairly priced.
◦ The price of stock B is too high.
◦ The expected return on stock B is too high.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by RYAN BANYAN on Apr 25, 2021

Mholman93

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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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RYAN BANYAN

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

kjohnson

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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