PLEASE ANSWER THE 3 QUESTIONS BELOW: A stock has an exported return of 14% the r

Q: PLEASE ANSWER THE 3 QUESTIONS BELOW: A stock has an exported return of 14% the r

We know, Re = Rf + (Rm-Rf)*Be 14 = 3 + 8*Be 8Be = 11 Be = 11/8 Be = 1.375 1)The company has a poor Business Model. False We know, Re = Rf + (Rm-Rf)*Be 14 = 3 + 8*Be 8Be = 11 Be = 11/8 Be = 1.375 1)The company has a poor Business Model. False

ID: 2640798 • Letter: P

Question

PLEASE ANSWER THE 3 QUESTIONS BELOW:

A stock has an exported return of 14% the risk ? free rate is 3% and the Market Risk premium is 8% What is the beta of this stock? Which does not belong as one or the 3 Signs of a Terrible Investment . 1. The company has a poor business model . 2. The stock is trading at a sky-high valuation 3. The companies D/E ratio is twice the industry average 4. The company has lost its focus 5. All of the above Using the S in the CAN SLIM stock selection approach if you are choosing between two stocks to buy, one with 5 billion shares and the other with 50 million, the smaller one will usually be the better performer. True False

Explanation / Answer

We know,

Re = Rf + (Rm-Rf)*Be

14 = 3 + 8*Be

8Be = 11

Be = 11/8

Be = 1.375

1)The company has a poor Business Model.

False