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Suppose the risk-free rate is 5%, and the expected return on the market is 13%.  If a particular stock has an expected return of 17%, what must its beta be?

Given the following information: Probability ofStock A Return ifState of EconomyState of EconomyState OccursRecession0.30-8%Normal0.5012%Boom0.2025%Use the above information to calculate the expected return for Stock A.

Under what conditions will an announcement have no effect on common stock prices?

What is an efficient portfolio, and how does it differ from an inefficient one?

Given the following information: Probability ofStock A Return ifState of EconomyState of EconomyState OccursRecession0.30-8%Normal0.5012%Boom0.2025%Use the above information to calculate the standard deviation for Stock A.

A U.S. Treasury STRIPS has a face value of $100 and matures on June 15, 2035. The STRIPS has an ask yield quote of 2.20%. At the time of the quote, there are 10 years remaining to maturity.Calculate the price of the STRIPS, expressed per $100 of face value. Note: STRIPS use semi-annual compounding.

What is a sustainable growth rate? How is it calculated?

You are considering an investment that will pay you $15,000 per year for the next 9 years. If you require a 12 percent return on your money, what is the most you would be willing to pay today for this investment?

You are offered an investment that will pay you $300 in one year, $500 in two years, $700 in three years, and $1,000 in four years. You can earn 10 percent on similar investments. What is the most you should pay for this investment?

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