The return of stock B is __% The volatility of stock A is __% The volatility of stock B is __%

Q: Illustrate the impact of changes in the dividend, the growth rate, the expected return on the…

A: The value of a stock is determined by several factors, including the dividend, the growth rate, the…

Q: Magnesium Corporation has a policy of retaining 75% of its income. The growth rate of the company…

A: " Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first…

Q: A stock's capital gains are equal to its dividend divided by the stock price. OA. True OB. False

A: The required rate of return on a stock measures the rate of return desired by the investors in the…

Q: he price to earnings ratio (P/E) is determined by:   Question 6 options:   1)  expected dividend…

A: P/E ratio stands for Price-Earning ratio. It is that accounting ratio which tells that how much an…

Q: tion - Name the stock with the highest weightag

A: Nifty is stock market index of India which consists of 50 stocks of various difference sector.

Q: Suppose securities A, B, and C have the following expected return and risk.…

A: Stock with lowest coefficient of variance is mean variance dominant stock. coefficient of variance…

Q: There is a --- impact of earnings on stock prices O a. Deductive O b. Positive O c. Normative O d.…

A: Earnings, also known as net income or profit, represent the amount of money a company has left over…

Q: Question 1 Consider the three stocks in the following table. P, represents price at time t, and Q,…

A: The rate of return refers to the minimum return earned by the investor while investing in the stocks…

Q: How does higher expected growth affect a stock’s value?

A: Stock value is referred to as the shares of the corporation, which used to appear to trade at the…

Q: The expected return on a stock is called the __ from the investor's perspective, and the __ from the…

A: The expected return for the stock is an important concept. To calculate the expected return for the…

Q: Define average stock’s beta

A: Beta tells about the change in stock’s return given to change in market risk.

Q: State of Economy Probability of State Return on Asset D in State Return on Asset E in State Return…

A: Expected return on investment is the expected value of the probability distribution of return it can…

Q: What are the two components of most stocks’ expected total return?

A: Expected total return refers to the full return of an investment over a certain period of time.

Q: How do you calculate price earnings ratio, given the stocks historical prices?

A: Price earnings ratio is ratio of price per share and earning per share. PE ratio=Price per…

Q: How can I calculate CF or (dividends + buyback) in Implied equity risk premium? (By example of…

A: Implied ERP is calculated by first calculating the Return on Equity using constant dividend growth…

Q: he price of a stock is:

A: The price of a stock is the present value of all expected future dividends, discounted at the…

Q: The required return on Miller Corporation stock is

A: The beta of a stock is the degree of responsiveness to movements in price with changes in the stock…

Q: Market capitalisation is equal to O a. Number of shares x EPS O b. Number of shares x Book…

A: Market capitalisation means value of the company in the market.

Q: Calculate the beta adjusted by the degree of freedom for stock X relative to the equity market using…

A: In finance, beta is a measure that indicates the sensitivity of a stock's returns to changes in the…

Q: Initial Final Shares Initial Value of Outstanding stock Stock Price Price (million) $million) АВС…

A: In this we have to calculate initial market value and final value and find the difference between…

Q: Preferred Dividend formula = Par value * Rate of Dividend * Number of Preferred Stocks.   can u…

A: The preferred dividend formula is used to calculate the amount of dividends that a company must pay…

Q: One stock valuation model holds that the value of a share of stock is a function of its…

A: Dividend refers to share to total net earnings that is shared by entity with its common…

Q: what are two methods to calculate the expected rate of return for stocks?

A: The required rate of return (RRR) is the lowest rate of return an investor will accept for holding…

Q: 1. The rate at which a stock's price is expected to appreciate (or depreciate) is called the yield.…

A: As per the guidelines in the case of multiple questions I am only going to answer the first three…

Q: When liabilites increase and stock holder equity decreases, what is the total assets?  shouldn't it…

A: According to the accounting equation, the total of liabilities and the stockholder equity is the…

Q: A stock's next expected dividend divided by the current stock price is the: O current yield O total…

A: A stock's price is decided by the dividend it pays, the dividend growth rate and the required rate…

Q: ________ is a model for determining the price of a stock, based on a future series of dividends that…

A: The price of a stock can be determined by the present value of dividends paid in the future.

Q: Which of the following statements regarding the dividend discount model f computing stock prices…

A: According to the Gordon’s Model, the market value of the share is equal to the present value of…

Q: Explain realized rate of return on stock

A: Realized Rate of Return on stock gives you the percentage return on holding the stock for a certain…

Q: In a ________ index, changes in the value of the stock with the greatest market value will have the…

A: The value weighted index is a type of index which is considering the effect of weight of a…

Q: Return formula for common stock?

A: Applying capital asset pricing model (CAPM),

Q: The Price-Earning ratio (P/E) of stock  A, B, C are 5, 3, 7 respectively. Which one you should buy?

A: A Price-earnings ratio is the relationship between firm's stock price and earnings per share. The…

Q: What is the expected return of Stock A given the information below about its returns across future…

A: Solution:- Expected rate of return means the return expected by an investor from asset by investing…

Q: How GARCH (generalized ARCH model) model is applied to Stock Price Volatility?

A: GARCH model is one of the models that is usually used by the financial analysts. The financial…

Q: Why is Rs always greater than G?

A: Growth Rate: Growth rate is the expected rate of growth as per the market condition, of a security…

Q: how is price oc preffered stock gotten

A: The cost of preferred stock is determined by the dividend payment divided by the net proceeds per…

Q: Higher a stock’s volatility, why does the higher the probability of large increases or decreases in…

A: Stock Volatility:   Volatility is defined as a statistical measure of the dispersion of the returns…