Explore BrainMass

Explore BrainMass

    Expected rate of returns

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Stock Beta Current Price Expected Price Expected Dividend
    X 0.8 $12.5 $13.1 $0.8
    Y 1.1 $8.25 $9.76 $0.20
    Z 2.1 $25.7 $30.04 $0.00

    What are the expected returns for stocks X, Y, and Z for the next period based on the above prices and dividends?

    © BrainMass Inc. brainmass.com June 4, 2020, 12:42 am ad1c9bdddf
    https://brainmass.com/business/finance/expected-rate-of-returns-354513

    Solution Preview

    stock X

    expected gain is 13.1 - 12.5 = 0.6, and expected dividend is 0.8, so total expected gain is 0.6 + ...

    Solution Summary

    This solution helps answers questions regarding expected rate of return.

    $2.19

    ADVERTISEMENT