The market price of a security is $100 and the expected return is 15%. The risk-free rate is 7% and the market risk premium is 10%. The firm pays a dividend every year. What is the percentage change of the market price today if the correlation of the security return with the market portfolio return doubles?

Suppose that the rate of return on the market portfolio is 8% and the risk-free rate is 1%. Con- sider a stock with B = 1.3. The firm is expected to have no earnings in the first year (E1 = 0), and then $10 earnings-per-share in the second year (E2 = 10). After that, earnings are expected to grow at a constant annual rate of 8%. The retention ratio is 80% in all periods. Round-up all your answers to 2 decimal places. А. Find the fundamental value of the stock today (t = 0). В. Suppose the company decided to pay out 40% of its earnings as dividends. What would be the fundamental value of the stock today (t = 0)?

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.4% rate of inflation in the future. The real risk - free rate is 2.0%, and the market risk premium is 8.0%. Mudd has a beta of 1.7, and its realized rate of return has averaged 15.0% over the past 5 years. Round your answer to two decimal places.

Assume Merck (MRK) just finished paying an annual dividend of $2.1 (for 2019). You look up their beta and it equals 0.34 , implying it's much less risky than the market portfolio. The current risk free rate equals 1.96 %. Assume a market risk premium of 9.9 %. Merck's current stock price is $79. Assuming investors expect Merck to grow at a constant rate in perpetuity, what is that growth rate expectation? (write this number as a decimal and not as a percentage, e.g. 0.11 not 11%. Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234)