1. Because the security market line is based only on non-diversifiable risk…
A. … individual stocks will plot above the SML.
B. … individual stocks will plot on the SML.
C. … individual stocks will plot below the SML.
D. … individual stocks could plot above or below the SML.
E. … none of the above.
2. Seitz Glassware is trying to determine its growth rate for an annual cash dividend. The most recent? dividend, Div0 was $ 0.25per share. The? stock's target return rate is 10%.
What is the? stock's price if
a. the annual growth rate is 1%?
b. the annual growth rate is 3%?
c. the annual growth rate is 5%?
d. the annual growth rate is 7%?
e. the annual growth rate is 9%?