Computing stock beta, Suppose that the risk free rate is 8

Computing stock beta

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Reference no: EM1373136

Suppose that the risk free rate is 8 percent and the expected rate of return on the market is 18 percent.
16. A share of stock is now selling for $100. It will pay a dividend of $9 per share at the end of the year. Its beta is 1.0. What do investors expect the stock to sell for at the end of the year?
18. A stock has an expected return of 6 percent. Compute its beta?

Reference no: EM1373136

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