A stock has an expected return of 11.05%, its beta is 1.13, and the risk-free rate is
Question:
A stock has an expected return of 11.05%, its beta is 1.13, and the risk-free rate is 3.6%. What must the expected return on the market be?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 92% (13 reviews)
Here we need to find the expected return o...View the full answer
Answered By
Stephen ouma
I have worked with different academic writing companies such as wriredom, writerbay, and Upwork. While working with these companies, I have helped thousands of students achieve their academic dreams. This is what I also intend to do here in SolutionInn
4.90+
19+ Reviews
62+ Question Solved
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781259654756
10th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan, Gordon Roberts, J. Ari Pandes, Thomas Holloway
Question Posted:
Students also viewed these Business questions
-
An investment has an expected return of 11 percent per year with a standard deviation of 26 percent. Assuming that the returns on this investment are at least roughly normally distributed, how...
-
A stock has an expected return of 10.45 percent, its beta is .85, and the expected return on the market is 11.8 percent. What must the risk-free rate be?
-
A stock has an expected return of 11.85 percent, its beta is 1.08, and the risk-free rate is 3.9 percent. What must the expected return on the market be?
-
The following information pertains to the inventory of Parvin Company: Jan. 1 Beginning inventory 500 units 2,800 units Purchased Purchased 1,100 units Apr. 1 Oct. 1 $19 $24 $25 During the year,...
-
Use the Neyman-Pearson lemma to indicate how to construct the most powerful critical region of size to test the null hypothesis = 0, where is the parameter of a binomial distribution with a given...
-
In 1969 and again in 1970, a lottery was held to determine who would be drafted and sent to Vietnam in the following year. For each date of the year, a ball was put into an urn. For example, in the...
-
Many single women and married couples use donated sperm to conceive children each year. Pennsylvania resident Donna Donovan decided to use donated sperm from Idant Laboratories, a New York sperm bank...
-
You are provided with the following information for Najera Inc. for the month ended June 30, 2014. Najera uses the periodic method for inventory. Instructions (a) Calculate (i) Ending inventory ,...
-
A 2 kg block is attached to a spring with a force constant of 400 N/m. The block is initially at rest and is compressed by 0.5 meters from its equilibrium position. When released, the block undergoes...
-
A portfolio is formed as follows: sell short $2,000 of security 1 and buy $3,000 of security 2, $2,000 of security 3, and $3,000 of security 4. the cash provided by the owner of the portfolio is...
-
A stock has an expected return of 12.15%, its beta is 1.31, and the expected return on the market is 10.2%. What must the risk-free rate be?
-
A stock has a beta of 1.15, the expected return on the market is 10.3%, and the risk-free rate is 3.8%. What must the expected return on this stock be?
-
(a) Eukaryotic DNA replication is more complex than prokaryotic replication. Give one reason why this should be so. (b) Why might eukaryotic cells need more kinds of DNA polymerases than bacteria?
-
Risk management is a critical function for organizations, aiming to safeguard their objectives and assets. Traditional risk management and Enterprise Risk Management (ERM) are two distinct...
-
The following is the year ended data for Tiger Company
-
Small Time Dealers purchased goods to the value of R19 000. All the goods were sold within 20 days. It was determined that the following additional expenses should be allocated to this parcel of...
-
7. In the following program there are some syntax errors. Find the errors and write their correct forms (10 p) #include 1 I 2 void main() 38( 4 5 6 7 int a,b; float m n; scanf("%d%d",a,b); 567 (m+n)...
-
5. Use the switch...case structure to write a C++ program using C++ that compute the areas of the following shapes: Square . Circle .Right-angled triangle Rectangle . Sphere Ask the user to enter a...
-
Understand the four kinds of results.
-
Carlton Stokes owns and operates a car-detailing business named SuperShine & Detailing. For $150, Carltons business will hand wash and wax customers cars, vacuum the interior, and thoroughly clean...
-
Present Value If you were an athlete negotiating a contract, would you want a big signing bonus payable immedia.ely and smaller payments in the future, or vice versa? How about looking at it from the...
-
Present Value If you were an athlete negotiating a contract, would you want a big signing bonus payable immedia.ely and smaller payments in the future, or vice versa? How about looking at it from the...
-
Present Value If you were an athlete negotiating a contract, would you want a big signing bonus payable immedia.ely and smaller payments in the future, or vice versa? How about looking at it from the...
-
What are examples of forensic document examination comparisons?
-
The types of power used by a law enforcement organization can affect to what extent officers will comply with organizational rules and regulations. The paramilitary power associated with traditional...
-
Private Manufacturing Company acquired 90 percent of Secret Corporations outstanding common stock on December 31, 20X5, for $1,135,800. At that date, the fair value of the noncontrolling interest was...
Study smarter with the SolutionInn App