The market price of a stock is pound50expected rate of, Ask an Expert

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The market price of a stock is £50.

expected rate of return is 14%.

Assume the stock is expected to pay a constant dividend in perpetuity.

The risk-free rate is 7%,

the market risk premium is 9%.

What would the market price of the security be if its beta decreases by the average of the last two digits of your student ID number (%), assuming all other variables remain unchanged (using the CAPM model)?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92321085

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