Given the Following Information, Calculate the Expected Capital Gains Yield

question 50

Multiple Choice

Given the following information, calculate the expected capital gains yield for Chicago Bears Inc.: beta = 0.6; r_M = 15%; r_RF = 8%; = $2.00; P₀ = $25.00.Assume the stock is in equilibrium and exhibits constant growth.

• A) 3.8%
• B) 0%
• C) 8.0%
• D) 4.2%
• E) None of the above.

---

Definitions:

Restricted Affectivity

A condition where an individual displays a limited range of emotional expressions.

Schizotypal Personality Disorder

A mental health condition marked by extreme fear of social interaction, disturbed thoughts, suspicion, feelings of detachment from reality, temporary psychotic episodes, and frequently, non-traditional beliefs.

Idiosyncratic Worldviews

Highly individualized or unique perspectives on the world and one's experiences within it.

Bizarre

Strikingly out of the ordinary; odd, strange, or unusual in appearance or behavior.