4. Use the information given below to determine if the following securities are correctly priced, assuming that R = 5% and Rm = 10%. A В Current price (Po) $50 80 100 Next year price (P) $54 84 120...

4.<br>Use the information given below to determine if the following securities are<br>correctly priced, assuming that R = 5% and Rm = 10%.<br>A<br>В<br>Current price (Po)<br>$50<br>80<br>100<br>Next year price (P)<br>$54<br>84<br>120<br>Dividend (D,)<br>$2<br>4<br>5<br>Beta<br>0.8<br>1.2<br>3.0<br>If you were offered a 20-30-50 portfolio of the above securities as a package deal, will<br>you take it? Why?<br>

Extracted text: 4. Use the information given below to determine if the following securities are correctly priced, assuming that R = 5% and Rm = 10%. A В Current price (Po) $50 80 100 Next year price (P) $54 84 120 Dividend (D,) $2 4 5 Beta 0.8 1.2 3.0 If you were offered a 20-30-50 portfolio of the above securities as a package deal, will you take it? Why?

Jun 08, 2022

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4. Use the information given below to determine if the following securities are correctly priced, assuming that R = 5% and Rm = 10%. A В Current price (Po) $50 80 100 Next year price (P) $54 84 120...

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