The beta on Marks & Spencer Group plc. as on 19 October, 2015, is 0.9392. Assume that
Question:
The beta on Marks & Spencer Group plc. as on 19 October, 2015, is 0.9392. Assume that the return on U.K. Treasury bills is 1.94 percent and that the return on FTSE All Share market index is 5 percent. Calculate the expected return and risk premium on Marks & Spencer Group plc.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (4 reviews)
Expected Return on Marks Spencer Group plc RiskFree Rate Beta ...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Foundations Of Finance
ISBN: 9781292155135
9th Global Edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Question Posted:
Students also viewed these Business questions
-
CoursHeroTranscribedText: A 5-year loan in the amount of $48,000 is to be repaid in equal annual payments. What is the remaining principal balance after the third payment if the interest rate is 5...
-
You are given price information on 10 stocks, the FTSE All Share Index, and risk-free rate (UK T-bill rate) from 07/2015 to 05/2020. Data can be accessed in the Excel spread sheet (I've listed the...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
Read the case study of Ritz Carlton Company USA and discuss why and how you would transfer some of their methods to the operation of a non-accommodation component in an integrated resort complex.
-
Find the rational zeros of the polynomial function. 1. P(x) = x4 - 25/4x2 + 9 = 1/4 (4x4 25x2 + 36) 2. f (x) = x3 - 3/2x2 - 23/2 x + 6 = 1/2(2x3 3x2 23x + 12)
-
A pump is used to increase the pressure of water from 100 kPa to 900 kPa at a rate of 160 L/min. If the shaft power input to the pump is 3 kW, the efficiency of the pump is (a) 0.532 (b) 0.660 (c)...
-
Show that the log-likelihood in equation (12.2) has a maximum at \(\widehat{\mu}=\bar{y}\). n L() Inf(y,) = (-+y; In - In y;!). i=1 i=1 (12.2)
-
On January 1, 2012, Perez Company purchased 90% of the capital stock of Sanchez Company for $85,000. Sanchez Company had capital stock of $70,000 and retained earnings of $12,000 at that time. On...
-
Use the information provided in the table to answer the following questions. Assume that there were no changes in any other asset or liability accounts. December 2022 December 2023 Net Income...
-
Why do intrinsic and market values vary? At what circumstance they might be equal?
-
The data shared below is extracted from Financial Times website on the betas of four companies listed in the FTSE 100 market index in the UK namely Vodafone, Tesco, British Petroleum, and British...
-
Explain what it means for an instruction set to be orthogonal.
-
3. [10 marks] Suppose that the zero-coupon bond prices and oil forward prices for the next four quarters are 1 2 3 4 Oil forward 21 21.1 20.8 20.5 zero-coupon bond 0.9852 0.9701 0.9546 0.9388 (a)...
-
A company issued a bond in 30 June of year N. You have the following information about this bond: it was issued at par (50); it has an interest rate of 6%; it will be repaid in 30 June of N+5 and the...
-
Year 12345 Returns Y 17% N 22% 31 32 12 16 -24 -29 10 23 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round...
-
To what extent do implicit biases, stereotype threat, and microaggressions impede efforts to foster diversity and inclusion within organizational cultures, and what interventions can be implemented...
-
YOUNG Company issued 5,000 convertible bonds at the beginning of the current year. The bonds had a four-year term with a stated rate of interest of 6% and were issued at par with face value of =P1,...
-
Discuss the duties and responsibilities of the project manager. How critical is the project manager to the success of the project?
-
Arlington Merchants reported the following on its income statement for the fiscal years ending December 31, 2016 and 2015. 2016 2015 Sales $4,857,500 $4,752,900 Cost of goods sold 3,258,950 3,207,000...
-
What were the benefits of the new system? How did it change operational activities and decision making at ConAgra? How successful was this system solution ?
-
Why is paperless NHS a risky project? Identify the key risk factors.
-
What management, organization, and technology problems is the paperless NHS likely to encounter?
-
The Sunshine Selina Lotus Hotel generally charges conference organisers $65 per delegate attending a one day conference. It also incurs $10 in variable costs per delegate. Over the last few years, it...
-
Explain the statement accounting ratios are like statistics that have a set of principles and finality about them which at times may be misleading. What are the ways in which debtequity ratio can be...
-
You set up a C&D debris program at your site and recycle all the cardboard, gypsum wallboard, steel, concrete and brick, and wood for a new construction project. Your dumpster count at the end of the...
Study smarter with the SolutionInn App