AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 144 Topic 15 Discussion

AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 144 Topic 15 Discussion

GLO_CWM_LVL_1 Exam Topic 15 Question 144 Discussion:
Question #: 144
Topic #: 15

Mr. Patel expects the stock of A to sell for Rs. 70/- a year from now and to pay Rs. 4/- dividend. If the stock’s correlation with the Market is –0.3, and the standard deviation of A is 40% and standard deviation of the Market is 20% and the risk free rate of return is 5% and the market risk premium is 5% , what would be the price of stock A be now ?


A.

74


B.

73.65


C.

72.55


D.

75.65


Get Premium GLO_CWM_LVL_1 Questions

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.