Compute the expected return on an investment

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1. Walmart stock is currently selling$260.09drop to a price$250.20pay a dividend$2.72stock's beta0.99 for a share. It is expected to of a year from now. You expect the company to of in the next year and the is . The risk-free rate of return is 4.5% and the market rate of return is 11.5%. CAPM states that: RR = RF + β(RM - RF). c. Compute the expected return on an investment in Walmarts stock for the coming year. [Show answer to 2-decimal places xx.xx]

2. Benny's Burger Corporation has generated a mean return of 14% with a standard deviation of 8%. If you wanted to be 95% certain of your expected return next year, what range of possible returns would you expect to earn? Show range of returns to 2 decimal places xx.xx

Reference no: EM133076642

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