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The market price of a security is S56. Its expected rate o retum is 12%. The risk-free rat

The market price of a security is S56. Its expected rate o retum is 12%. The risk-free rat

The market price of a security is S56. Its expected rate o retum is 12%. The risk-free rate is 5%, and the market risk premium is 9%. What will the market price of the security be i ts beta doubles and all other variables remain unchanged)? Assume the stock is expected to pay a constant dividend in perpetuity. (Round your answer to 2 decimal places.) Market price

Abhinav 30-Nov-2019

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