If the required rate of return is 10 percent and the stock pays a fixed $5 dividend, its value is
a. $100
b. $75
c. $50
d. $25
c
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Which of the following terms implies an increase in responsibility and control in the vertical direction?
A) job rotation B) job enrichment C) job re-design D) job enlargement E) job satisfaction
George wants to pick a stock for his Diversified Hedge Fund. The fund has holdings in every country with a stock market. George is trying to decide which asset he should add to his portfolio: Stock A or Stock B
Expected return, Standard deviation and beta values for the two stocks are outlined in the table below. Which stock is best for George's portfolio and why? Stock A Stock B Risk-Free Asset Expected Return 8% 12% 5% Standard Deviation 12% 22% Beta 1 2 A) Stock A because it has a lower Beta. B) Stock A because it has more return per unit of standard deviation. C) Stock B because it has a higher return. D) Stock B because it has a higher Treynor Index with respect to standard deviation. E) Stock B because it has a higher Treynor Index with respect to Beta.