Calculate for the Following Sample Data Set: ​

question 11

Multiple Choice

Calculate for the following sample data set: ​ ​

• A) 5
• B) 11.5
• C) 9
• D) 15.1

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Definitions:

Rational Security Pricing

The concept that the market prices of securities reflect all available information and are valued accordingly in an efficient way.

Constant-growth Dividend-discount Model

A method for valuing a stock by assuming that dividends grow at a constant rate indefinitely, used to estimate the stock's price based on future dividend payments.

Multifactor CAPM

Generalization of the basic CAPM that accounts for extra-market hedging demands.

APT

The Arbitrage Pricing Theory, a multifactor model used to determine asset returns based on the relationship between a financial asset's expected return and its risks.