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How to calculate the stock price of b

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Reference no: EM132694571

The covariance between stock B and market portfolio is 0.03

The expected return for market portfolio is 11%, variance is 0.02

Risk free rate is 2%.

1) Please calculate expected return for stock B, beta, risk premium

2) If stock B pays dividend $15 at the end of each year and forever, how to calculate the stock price of B?

Reference no: EM132694571

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