Stock A tends to be 50% more volatile vs. ... the General Market. If T-Bills are paying approximately 2%..., please determine the % Required Rate of Return on Stock A assuming that the Market Premium is 12%.
2. For the immediately preceding problem, please determine the Expected % Return on the General Market.
3. Based upon Problems # 1 and # 2 above, if the Expected % ... Return is 14%, should one invest in Stock A ? Why or why not ?
4. Assume that one will take out a $ 20,000 loan. The Annual Interest Rate is 6%, and the loan is to be paid off in 2 years. If the loan is to be repaid with annual payments, how much will each annual payment need to be ?