Exhibit 8.4
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c c c c }
\text { Stack } & \text { Beta } & \text { Current Prica } & \text { Expertad Prica } & \text { Expertad Dividend } \
\hline \mathbf { X } & { [ .8 } & \$ 12.50 & \$ 13.10 & \$ 0.80 \
Y & 1.1 & \$ 2.25 & 9.76 & \$ 0.20 \
Z & 2.1 & \$ 25.70 & \$ 30.04 & \$ 0.00
\end{array}$$
-Refer to Exhibit 8.4.What are the expected returns for stocks X,Y,and Z for the next period based on the above prices and dividends?
&ensp;&ensp;&ensp;&ensp;X&ensp;&ensp; &ensp;Y &ensp;&ensp;&ensp;&ensp;Z
A) 4.8% &ensp;18.3% &ensp;16.9%
B) 10.7% &ensp;17.5% &ensp;14.4%
C) 11.2%&ensp;20.7% &ensp;16.9%
D) 12.3%&ensp; 22.5% &ensp;22.3%
E) 13.1%&ensp; 24.3% &ensp;18.2%

Question

Exhibit 8.4
Use the Information Below for the Following Problem(S)
 $$\begin{array} { c c c c c } 
\text { Stack } & \text { Beta } & \text { Current Prica } & \text { Expertad Prica } & \text { Expertad Dividend } \
\hline \mathbf { X } & { [ .8 } & \$ 12.50 & \$ 13.10 & \$ 0.80 \
Y & 1.1 & \$ 2.25 & 9.76 & \$ 0.20 \
Z & 2.1 & \$ 25.70 & \$ 30.04 & \$ 0.00
\end{array}$$
-Refer to Exhibit 8.4.What are the expected returns for stocks X,Y,and Z for the next period based on the above prices and dividends?
&ensp;&ensp;&ensp;&ensp;X&ensp;&ensp; &ensp;Y &ensp;&ensp;&ensp;&ensp;Z
A) 4.8% &ensp;18.3% &ensp;16.9%
B) 10.7% &ensp;17.5% &ensp;14.4%
C) 11.2%&ensp;20.7% &ensp;16.9%
D) 12.3%&ensp; 22.5% &ensp;22.3%
E) 13.1%&ensp; 24.3% &ensp;18.2%

Quizplus · Accepted Answer

Expected return for X = (13.10 + 0.80 - 12.50)/12.50 = .112 or 11.2%
Expected return for Y = (9.76 + 0.20 - 8.25)/8.25 = .207 or 20.7%
Expected return for Z = (30.04 + 0.00 - 25.70)/25.70 = 16.9%

Exhibit 84 Use the Information Below for the Following Problem(S)

Exhibit 84
Use the Information Below for the Following Problem(S)