Post a New Question


posted by .

5. Consider the following stocks, all of which will pay a liquidating dividend in a year and nothing in the interim:

Market Capitalization ($ million) Expected Liquidating Dividend ($ million) Beta
Stock A 800 1000 0.77
Stock B 750 1000 1.46
Stock C 950 1000 1.25
Stock D 900 1000 1.07

a. Calculate the expected return of each stock.
b. What is the sign of correlation between the expected return and market capitalization of the stocks?

Answer This Question

First Name:
School Subject:

Related Questions

More Related Questions

Post a New Question