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You have observed the following returns over time: Year Stock X Stock Y Market 2009 12% 11% 10% 2010 19 5 9 2011 -15 -8 -12 2012 5 1 1 2013 20 13 13
Assume that the risk-free rate is 3% and the market risk premium is 6%. Do not round intermediate calculations.
What is the beta of Stock X? Round your answer to two decimal places.
What is the beta of Stock Y? Round your answer to two decimal places.
What is the required rate of return on Stock X? Round your answer to one decimal place.
%
What is the required rate of return on Stock Y? Round your answer to one decimal place.
What is the required rate of return on a portfolio consisting of 80% of Stock X and 20% of Stock Y? Round your answer to one decimal place.
As an investor, what do you anticipate will be the outcome for Target Corporation by the end of the current fiscal year? Do you forecast improvement or loss? What do you forecast as the market price of the stock?
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You’ve observed the following returns on Doyscher Corporation’s stock over the past five years: –28.8 percent, 16.2 percent, 35.4 percent, 3.6 percent, and 22.6 percent. What was the arithmetic average return on the stock over this five-year period?
The Lo Sun Corporation offers a 6.0 percent bond with a current market price of $809.50. The yield to maturity is 8.24 percent. The face value is $1,000. Interest is paid semi-annually. How many years is it until this bond matures?
The Money Markets are primarily for
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