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Please can you make sure that this answer is correct the first time. I always have to repeat the questions.

Firm C Stock tends to be 30% more volatile vs. the General Market. The S & P 500 is expected to yield a 12% Rate of Return. If T-Bills yield a 2% ... Return, what is the Required Rate of Return on Stock C ?

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Tod Thiel
Tod ThielLv2
28 Sep 2019

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Please review this question it is answered in three questions. Please make sure it is correct I sometimes have to repeat the question.

5. Firm C Stock tends to be 30% more volatile vs. the General Market. The S & P 500 is expected to yield a 12% Rate of Return. If T-Bills yield a 2% ... Return, what is the Required Rate of Return on Stock C ?

6. Assume that Stock C above is expected to yield a 14% ... Return. Should one invest in Stock C ? Why or why not ?

7. Assume that Stock C above just paid a $ 4.00 Dividend Per Share. The Growth Rate for each of the next 3 years is 5% annually. Beyond Year 3, growth will level off at 2% per year indefinitely. What is the Stock Price for each share of Stock C ?

I need this question repeated because last time I posted this question. I could barely read the answer. Please can you answer the question as if I am doing it by hand using the calculater

1. Stock A tends to be 50% more volatile vs. ... the General Market. If T-Bills are paying approximately 2%..., please determine the % Required Rate of Return on Stock A assuming that the Market Premium is 12%.

2. For the immediately preceding problem, please determine the Expected % Return on the General Market.

3. Based upon Problems # 1 and # 2 above, if the Expected % ... Return is 14%, should one invest in Stock A ? Why or why not ?

PLEASE ANSWER ALL 6 QUESTIONS BELOW, PARTICULARLY QUESTIONS 5 AND 6. THANKS.

.You have the following information for Dell Inc.: 5%, 15%, -10%, 25%.

1. Calculate the average return and standard deviation for a population for Claymore.

2. The S&P 500 market portfolio has a standard deviation of 20%.Claymore Inc. has a beta of .57.Find the correlation between Claymore and the S&P 500.HINT: The formula for beta can help you get the correlation.

3. The S&P market portfolio has a return of 15%.Ten-year T-bonds (risk-free asset) have a return of 2.5%.Use Claymore’s beta of .57 to estimate the required return for the stock.

4. If you put $120,000 into Claymore and $40,000 into the S&P 500, find the return and standard deviation of your portfolio.

5. You estimate the expected return on Dell’s stock at 16%. If the market is efficient, what will happen to the price of Dell? Explain.

6. Dell announces a new project. The new project has a beta of 1.5 and an expected return (IRR) of 20%. Is the project a good idea? Explain.

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