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STATS Problems with Solution

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Question;Which is the standard deviation of the returns on Stock A from 2000 to 2009 closest to?Year End Stock A Realized Return (R - R) (R - R)22000 46.3% 29.85% 0.08910232001 26.7% 10.25% 0.01050632002 86.9% 70.45% 0.49632032003 23.1% 6.65% 0.00442232004 0.2% -16.25% 0.02640632005 -3.2% -19.65% 0.03861232006 -27.0% -43.45% 0.18879032007 27.9% 11.45% 0.01311032008 -5.1% -21.55% 0.04644032009 -11.3% -27.75% 0.0770063A) 33.2%B) 16.4%C) 31.5%D) 11.0%Your firm is planning to invest in a new generation system. Galt industries is an all equity firm that specializes in the business. Suppose Galt's equity beta is 0.75, the risk-free rate is 3%, and the market risk premium is 6%. If your firm's project is all equity financed, then which is your estimate of your cost of capital closet to?a) 5.25%b)6.00%c)6.75%d)7.50%

 

Paper#62230 | Written in 18-Jul-2015

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