A stock has an expected return of0.16,its beta is0.91,and the expected return on the market is0.09.What must

Fantastic news! We've Found the answer you've been seeking!

Question:

A stock has an expected return of 0.16, its beta is 0.91, and the expected return on the market is 0.09. What must the risk-free rate be?

Related Book For answer-question

Intermediate Financial Management

ISBN: 978-1111530266

11th edition

Authors: Eugene F. Brigham, Phillip R. Daves

See More Books

Posted Date: Dec 01, 2023 05:09 AM

See More Questions

1 If your client is not knowledgeable about the market, you should ____ versus comparable portfolios. increase the frequency of trading increase the risk of the portfolio decrease your time with the...
1. Security A has expected return of 17.6% and beta of 1.4. If the risk-free rate is 6%, what is the reward-to-risk rate for Security A? Question 2 The common stock of Detroit Engines has a beta of...
A stock has an expected return of 12.7 percent, its beta is 1.20, and the risk-free rate is 4.2 percent. What must the expected return on the market be?
Class Median Midpoint, x Income, I 19.5 $12,965 An individual's income varies with age. The table shows the median income I of individuals of different age groups within the United States for a...
When the wheel of a cart rolls from a smooth sidewalk onto a plot of grass, the interaction of the wheel with blades of grass slows the wheel. What slows light when it passes from air into glass or...
Assume that the population consists of all students currently in your statistics class. Describe how to obtain a sample of six students so that the result is a sample of the given type. a. Simple...
The following sale related transactions for PDR, Inc., occurred during the month of June. Requirement 1. Journalize the transactions for PDR, Inc. Omit explanations. Jun 3 Sold $3,200 (cost $2,100)...
Mac, an inventor, obtained a patent on a chemical process to clean old aluminum siding so that it can be easily repainted. Mac has a $50,000 tax basis in the patent. Mac does not have the capital to...
Investigate the integration of advanced geospatial data analytics, including remote sensing imagery analysis and geographic information system (GIS) mapping, in spatially explicit decision-making...
On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( EV of $1. PV of $1. EVA of $1. and PVA of $1) (Use the appropriate factor(s)...
Amy Gordon has been having blackouts and sees Dr. Perez for an office visit and numerous tests. Her Medicare Part B deductible has not been met for the year. The charges for the visit and tests are...
Which revenues are to be included in the disclosure of results of operations of oil and gas producing activities?
What is the appropriate accounting treatment for an individually significant unproved property that is proved? a. The net carrying value of the property is reclassified to a proved property account....
A publicly traded company is any business entity _______________. a. That is traded on a domestic stock exchange or over-the-counter market at the local, regional, or national level b. That is...
What is the appropriate accounting treatment for an individually insignificant unproved property that is proved? a. The net carrying value of the property is reclassified to a proved property...
Which disclosures are not supplemental? a. SMOG disclosures b. Proved oil and gas reserve information c. Costs incurred in oil and gas producing operations d. Evaluation of exploratory well costs e....
A Salt & Battery limited maintains a minimum cash balance of KShs. 2,000,000. The standard deviation of its daily net cash flows is estimated at KShs. 22,000. The transaction cost of buying and...
Consider a game of poker being played with a standard 52-card deck (four suits, each of which has 13 different denominations of cards). At a certain point in the game, six cards have been exposed. Of...
Hager's Home Repair Company, a regional hardware chain that specializes in "do it yourself" materials and equipment rentals, is cash rich because of several consecutive good years. One of the...
The table below gives the balance sheet for Travellers Inn Inc. (TII), a company that was formed by merging a number of regional motel chains. Travellers Inn: December 31, 2012 (Millions of Dollars)...
David Lyons, CEO of Lyons Solar Technologies, is concerned about his firm's level of debt financing. The company uses short-term debt to finance its temporary working capital needs, but it does not...
On 1 January 2024, a company receives gross debenture interest of 1,600 from another UK company and pays net debenture interest of 8,640 to individuals. Explain the corporation tax treatment of each...
A company's accounts for the 17 months to 30 June 2023 include: The debentures were acquired (not for trade purposes) on 1 May 2022. Interest is payable half-yearly on 30 April and 31 October. Show...
Distinguish between P-time and M-time.

A stock has an expected return of0.16,its beta is0.91,and the expected return on the market is0.09.What must

Question:

Expert Answer:

To calculate the riskfree rate we can use the Capital Asset Pricing Model ... View the full answer

Intermediate Financial Management

Students also viewed these finance questions