Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Chapter 10.2, Problem 1CC
Summary Introduction

To discuss: The method of calculating the expected return on an investment.

Introduction:

Expected return refers to the return that the investors expect on a risky investment in the future.

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How can the model be used to estimate the predicted return ona stock?
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Let's explore the difference between "expected" and "actual" return of a stock. 1) How might we calculate what the expected return of a stock should be? 2) How might we calculate the "actual" return of a stock?

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Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book

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