Over the next year, the stock market will either be a bull market or a bear market. The probability of a bull market is 25.00%, while the probability of a bear market is 84.00%. Shares in Meguire and Company will have a return of 16.80% in a bull market, and -8.30% in a bear market. The risk-free rate is 2.90%. What is the Sharpe Ratio of Meguire and Company shares?

If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company: High price Low price EPS Year 1 $ 62.18 40.30 2.35 a. High target price b. Low target price Year 2 $ 67.29 43.18 2.58 Year 3 $74.18 39.27 2.73 Year 4 $ 78.27 46.21 2.89 Earnings are expected to grow at 9 percent over the next year. a. What is the high target stock price in one year? Note: Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the low target stock price in one year? Note: Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

The risk-free rate of return (r) is 2% and the expected market rate of return (rm) is 10%. The shares A, B and C all pay a dividend (D) of $6 a year. The betas for the shares are: A = 0.2; f = 1.0; and ?c = 1.8. The shares are all trading at the same price (P) of $60.Requirements. Answer the following questions:Q1. What are the expected returns on A, B and C?Q2. What are the expected prices of A, B and C?Q3. What action would you recommend for A?Q4. What action would you recommend for B?Q5. What action would you recommend for C?

Consolidated Industries has a required return of 17.5 percent. The return on the market is 9 percent and the risk-free rate of return is 2 percent. What is the beta of this stock?