The correlation between a company's gross revenue and the market index is 0.2. The excess return of
Question:
The correlation between a company's gross revenue and the market index is 0.2. The excess return of the market over the risk-free rate is 6% and the volatility of the market index is 18%. What is the market price of risk for the company's revenue?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (18 reviews)
In equation 362 ...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
Answer the following questions: a. Suppose Asset A has an expected return of 10% and a standard deviation of 20%. Asset B has an expected return of 16% and a standard deviation of 40%. If the...
-
a. Suppose Asset A has an expected return of 10% and a standard deviation of 20%. Asset B has an expected return of 16% and a standard deviation of 40%. If the correlation between A and B is 0.35,...
-
The correlation between the Charlottesville International Fund and the EAFE Market Index is 1.0. The expected return on the EAFE Index is 11%, the expected return on Charlottesville International...
-
2. The beam in the figure is made of material having modulus of elasticity E = 200 GPa . The moment of inertia of segments AB and CD of the beam is I = 6.77 10-6 m, while the moment of inertia of...
-
A laboratory technician drops a 0.0850-kg sample of unknown material, at a temperature of l00.0C, into a calorimeter. The calorimeter can, initially at 19.0C, is made of 0.150 kg of copper and...
-
Figure 27-3 shows the demand and supply for U.S. dollars in an example in which Japan and the United States trade only with each other. a. Describe and draw the reciprocal supply and demand schedules...
-
Find the derivative of each function in Problem 9 when the derivative exists. Otherwise, show that the derivative does not exist. Data from Problem 9 Find the real and imaginary parts of the...
-
Toxaway Company is a merchandiser that segments its business into two divisionsCommercial and Residential. The companys accounting intern was asked to prepare segmented income statements that the...
-
Lawyer Fred has received a notice of levy from the IRS with respect to cash that the lawyer is holding on behalf of a client. Client calls lawyer and says that the IRS levy is a mistake and that...
-
Oil field pipes are internally coated in order to prevent corrosion. Researchers at the University of Louisiana, Lafayette, investigated the influence that coating may have on the surface roughness...
-
Show that, if y is a commodity's convenience yield and u is its storage cost, the commodity's growth rate in a risk-neutral world is r y + u, where r is the risk-free rate. Deduce the relationship...
-
A company can buy an option for the delivery of one million units of a commodity in three years at $25 per unit. The three year futures price is $24. The risk-free interest rate is 5% per annum with...
-
In proteins, the imidazole groups of histidine play key roles in catalysis involving reversible protonation/deprotonation events. The pK of the imidazole group is influenced by surrounding amino...
-
Dec. 1 Purchased 1 , 6 0 0 shares of the company's $ 1 par value common stock as treasury stock, paying cash of $ 8 per share. Dec. 1 5 Sold 2 0 0 shares of the treasury stock for cash of $ 1 1 per...
-
Archie needs funding to start his dog walking business, so he takes out a bank loan that is secured against his home. What type of financing resource is Archie using? a . ) Trade credit b . ) Barter...
-
In a nuclear power plant dry saturated steam at 3 0 bar enters a high pressure turbine and expands isentropically to a pressure of 2 . 5 bar. At this pressure the steam is passed through a moisture...
-
State F imposes a land transfer tax of 2% on property sales. If a property is sold for $300,000, what is the land transfer tax?
-
Your credit card company charges you 1.45 percent per month. What is the EAR on your credit card?
-
Using data from 2002 and with projections to 2024, total annual expenditures for national health care (in billions of dollars) can be described by E = 4.61x 2 + 43.4x + 1620 where x is the number of...
-
One study found that the elderly who do not have children dissave at about the same rate as the elderly who do have children. What might this finding imply about the reason the elderly do not dissave...
-
A banks position in options on the dollareuro exchange rate has a delta of 30,000 and a gamma of 80,000. Explain how these numbers can be interpreted. The exchange rate (dollars per euro) is 0.90....
-
What is the delta of a short position in 1,000 European call options on silver futures? The options mature in eight months, and the futures contract underlying the option matures in nine months. The...
-
What is the delta of a short position in 1,000 European call options on silver futures? The options mature in eight months, and the futures contract underlying the option matures in nine months. The...
-
Department M had 2,800 units 59% completed in process at the beginning of June, 11,600 units completed during June, and 1,600 units 30% completed at the end of June. The number of equivalent units of...
-
Managerial accounting reports historical information often with the purpose of O improve the company's past performance. O helping managers to make decisions that will. comparing actual results to...
-
Financial information is presented below: Operating Expenses $ 90,000, Sales Returns and Allowances 25,000, Sales Discounts 15,000, Sales 400,000 and Cost of Goods Sold 212,400. Gross profit would...
Study smarter with the SolutionInn App