Find what is the share intrinsic value

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Reference no: EM132659427

Problem 1: Suppose a particular stock's return is perfectly characterised by the normal distribution. This stock has a mean return of 10% and standard deviation of 3%. Within what range will approximately 95% of all possible returns on this stock lic:

a. 2% to 18%

b. -2% to 22%

c. 4% to 10%

d. 4% to 16%.

c. None of the above

Problem 2: Given only information on beta, which of the following stocks is considered the least risky:

a. Stock A beta - 1.45

b, Stock B beta = 2.34

c. Stock C beta = 0.68

d. Stock D beta - 0.90.

e. None of the above

Problem 3: What is the expected return from an asset having the following possible returns and associated probabilities? Possible return Probability 259% 20% 15% 50%% 5% 30%%

a. 15%

b. 14%

C. 16.5%

d. 13.5%

c. None of the above

Problem 4: A company has just paid an annual dividend of 15 cents per preference share. If the required rate of return is 15%, what is the share's intrinsic value?

a. $1.00

b. $1.15

C. $1.50

d. 51.6

e. None of the above

Reference no: EM132659427

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