Multiple Choice
The current price of Stock Y is $12.It is expected that the stock will pay an annual dividend of $0.60 and sell for $13.50 in one year.The risk-free rate is 6%.The expected return on the market portfolio is 14% with a standard deviation of 17%.Assume the market is in equilibrium.What is current rate of return on Stock Y?
A) 6.50%
B) 8.00%
C) 12.50%
D) 17.50%
Correct Answer:
Verified
Correct Answer:
Verified
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