This preview shows pages 1–6. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: dividend payments at the required rate of return (calculated in #8.2) ? (recall: annualized return = geometric mean) 2) Suppose it is now three years later (time t=3), you just received your third dividend payment (D 3 ), and the price of the stock (P 3 ) is $50. Suppose expectations regarding future dividend payments remain unchanged. What is the new required rate of return? B) What is the probability that of observing a stock return < 100%?...
View
Full
Document
 Fall '08
 MATTHEWJAMESBARCASKEY

Click to edit the document details