Business, 03.04.2020 17:09 destinyleisantos

The market price of a security is $52. Its expected rate of return is 9%. The risk-free rate is 5%, and the market risk premium is 7%. What will the market price of the security be if its beta doubles (and all other variables remain unchanged)? Assume the stock is expected to pay a constant dividend in perpetuity.

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The market price of a security is $52. Its expected rate of return is 9%. The risk-free rate is 5%,...

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