Which of the following represents a stock's real value? 1) Profitability ratio 2) Market value 3) Price earnings ratio 4) Par value Question 82 Laura is analyzing several investment possibilities. She thinks that sor

Discuss how to determine the risk or beta of a stock, the required rate of return of a stock and the value of a stock.  How do you determine if a stock has high or low or average risk when compared to the S&P 500? How do you determine if a stock is overpriced, underpriced or fairly priced? Explain and Discuss.

Step by step explaination (use attached diagram)   This question relates to Diagram 6 from the diagrams, which shows the probability distributions of returns for Shares N, P and Q. In which share would a risk-averse investor be most likely to invest? Select one: a. Share N b. Share P c. Share Q d. We need more information about the investor's risk tolerance to determine which share the investor would prefer.

Question 77 For the following, fill in the blanks with the appropriate term(s). For questions that give you two or three choices to choose from, circle the most appropriate. (7.1) The return on an investment comes in two forms: the and the two forms: component gain or loss. The return on investment in common stock comes in gains (or losses).. and gains (or losses) for an investment in common stock arise from in the value of the investment. (7.2) The total percentage return for an investment in common stock is the sum of the yield and the [(Pt+1-P)/ Pt] The gains yield. The dividend yield is defined algebraically as gains yield is defined algebraically as (7.3) The debt represented by T-bills is virtually free of any life. We will call the rate of return on such debt the over its short and we will use it as a kind of benchmark. The difference between the rate of return for a risky investment and the return on T-bills is the for the risky asset. som levo (7.4) An investor's portfolio is…