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A stock will provide a rate of return of either −26% or 39%.
a. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.)
Expected return %
Standard deviation %
b. If Treasury bills yield 6.5% and investors believe that the stock offers a satisfactory expected return, what must the market risk of the stock be? (Enter your answer as a whole percent.)
Market risk %
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The loan is paid with equal payments during 100 periods (each payment is made in the end of the corresponding period), and the interest rate per period is 0.02. For the payment made in period 81, what part of it is made towards principal payment?
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You buy a share of The Ludwig Corporation stock for $20.10. You expect it to pay dividends of $1.08, $1.13, and $1.1823 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $27.49 at the end of 3 years. Calculate the growth rat..
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Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 9.17 percent, what is the value of these bonds?
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