Completely certain returns and completely uncertain returns
Question: The probability distribution of a less risky expected return is more peaked than that of a riskier return. What shape would the probability distribution have for (a) completely certain returns and (b) completely uncertain returns?
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If the dividend expected during the coming year is $2.50 and the growth rate is a constant 5%, what is the equilibrium price for Lana's stock?
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What is the difference between Kamath's and Gehr's required rates of return?
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What shape would the probability distribution have for (a) completely certain returns and (b) completely uncertain returns?
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Q1. What is the require rate of return on the stock? Q2. What is the price of the stock at the end of year 3?
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