Compute what is the expected return for the stock

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Question 1: A firm's stock has 50% chance of a 28% rate of return. a 30% chance of a 19% rate of return. and a 20% chance of a -11% rate of return. What is the expected return for this stock? Answer as a percent return to the nearest hundredth of a percent as in xx.xx without entering a percent symbol. For negative returns include a negative sign

Question 2: Suppose the risk free rate is 2.8% and the expected rate of return to the market is 10.4%. If the stock xyz's beta is 1.4, what is the expected rate of return to the stock? Answer as a percent return to the nearest hundredth of a percent as in xx.xx without entering a percent symbol. For negative returns include a negative sign.

Reference no: EM132645919

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