Question: 1a)Calculate the expected return for B Services which has a beta of 0.83 when the risk free rate is 0.05 and you expect the market

1a)Calculate the expected return for B Services which has a beta of 0.83 when the risk free rate is 0.05 and you expect the market return to be 0.12.

B) Calculate the expected return for D Industries which has a beta of 1.0 when the risk free rate is 0.03 and you expect the market return to be 0.13.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Please show the calculation: Calculate the expected return for E Services which has a beta of 1.5 when the risk free rate is 0.05 and you expect the market return to be 0.11.

Calculate the expected return for E Services which has a beta of 1.5 when the risk- free rate is 0.08 and you expect the market risk premium (a.k.a. the excess return on the market) to be 0.15.

1. Which of the following statements about the risk-free asset is correct? e risk-free asset is defined as an asset for which there is uncertainty regarding the rate of return The standard deviation...

56. When identifying undervalued and overvalued assets, which of the following statements is false? a. An asset is properly valued if its estimated rate of return is equal to its required rate of...

Calculate the expected return for A Industries which has a beta of 1.90 when the risk free rate is 0.05 and you expect the market return to be 0.15. (Keep 4 decimal places) Question 2 Rates of Return...

(a) Calculate the expected return for Company A, which has a beta of 1.75 when the risk free rate is 0.03 and you expect return on market portfolio (RM) to be 0.11 (b) Draw the SML under the above...

Calculate the expected return for Express Inc. which has a beta of .69 when the risk free rate as a decimal is 0.09 and you expect the market return as a decimal to be .14. A. 0.05% B. 13.91% C....

Calculate the expected return for A Industries which has a beta of 1.90 when the risk free rate is 0.05 and you expect the market return to be 0.15. (Keep 4 decimal places)

Please show calculation: Calculate the expected return for A Industries which has a beta of 1.75 when the risk free rate is 0.03 and you expect the market return to be 0.11.

A shaft of solid circular cross section consisting of two segments is shown in the first part of the figure. The left-hand segment has diameter 80 mm and length 1.2 m; the right-hand segment has...

Using the 5 step model of revenue recognition explains when revenue should be recognized for the following situation. Make sure you apply all steps and individual criteria within each step. 5G...

The diagram shows a cuboid. Work out a the volume of the cuboid b the surface area of the cuboid. 6cm 3cm 4 cm

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".