Correlation coefficient from diversification perspective

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1. Consider the following information. HCB stock has just paid a $4.00 dividend (D0). Dividends are expected to grow at a rate of 70.0% this year, 40.0% next year, 20.0% the year after, and 7.0% per year forever after that. HSB's stock's required return is 9.0%. Calculate the current stock price. a. $473.50 b. $495.02 c. $544.52 d. $549.47 e. $571.20

2. Discuss the implications of the correlation coefficient from a diversification perspective.

Reference no: EM131830095

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