Calculate an asset standard deviation based

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1. Swanson Company’s long-run constant dividend growth is expected to be 10%. If the required return (rs) for Swanson is 15%, and the most recent dividend paid (D0) was $2.00, what is the most likely stock price one year from now?

$48.40

$44.00

$38.60

$35.00

$29.80

2. Calculate an asset’s standard deviation based on the following observed sample of returns: -5%, 3%, 8%, 10%, 15%.

7.15%

7.60%

8.38%

8.47%

9.22%

Reference no: EM131893892

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