What is the confidence interval on research in motions beta

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Read the case study "Waldo County" at the end of Chapter 10. In a two -to -four page paper, address the following:

• Given the projections in the Table 10.8, in one- to -two pages, calculate the NPV and interpret your results.

In one -to -two pages, construct a sensitivity and a scenario analysis of the project and explain what these analyses reveal about the project's risks and potential value to the firm.

Answer the following problem from the end of Chapter 9. Respond to at least two of your classmates' posts.

The following table shows estimates of the risk of two well-known Canadian Stocks:

 

Standard Deviation, %

R2

Beta

Standard Error of Beta

Toronto Dominion Bank

25

.66

1.26

.09

Research in Motion

44

.08

.82

.25

a What proportion of each stock's risk was market risk, and what proportion was specific risk?

b What is the variance of Toronto Dominion? What is the specific variance?

c What is the confidence interval on Research in Motion's beta?

If the CAPM is correct, what is the expected return on Toronto Dominion? Assume a risk-free interest rate of 5% and an expected market return of 12%.

Reference no: EM131154615

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