b) You currently own the following portfolio of shares. Using the information provided in the table,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
b) You currently own the following portfolio of shares. Using the information provided in the table, calculate the expected return on your portfolio. The current risk-free rate is 1.5%, and the market risk premium is 2.5%. (6 Marks) Company Bulk Nutrients Ince BioX Pine Apple Express AUDEnergy Beta 1.24 1.9 2 0.8 Total Value of Shares $45,000+¹ $26,000 $23,500 $85,000 b) You currently own the following portfolio of shares. Using the information provided in the table, calculate the expected return on your portfolio. The current risk-free rate is 1.5%, and the market risk premium is 2.5%. (6 Marks) Company Bulk Nutrients Ince BioX Pine Apple Express AUDEnergy Beta 1.24 1.9 2 0.8 Total Value of Shares $45,000+¹ $26,000 $23,500 $85,000
Expert Answer:
Answer rating: 100% (QA)
Riskfree Rate Market Risk Premium Company Name Bulk Nutrients Inc ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
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...
-
Using CAPM: A stock has a of 1.2. The equity risk premium is 6 percent and the risk free rate is 2 percent. What is the rate of return required by investors in the stock? Question 2 4.1.b - using...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Apache NetBeans IDE is an open-source integrated development environment, and it supports development of all Java application types, which include . a. Java desktop applications b. Mobile and Web...
-
This comment appeared in the annual report of MacCloud Inc.: The Company could pay cash or property dividends on the Class A common stock without paying cash or property dividends on the Class B...
-
Why do health care leaders have a higher need for ethical behavior than might be expected in other settings?
-
Using the maximum strain criterion and micromechanics, set up the equations for predicting the averaged isotropic strength of a randomly oriented continuous fiber composite. Your answer should be...
-
The heat capacity at constant volume of hydrogen sulfide at low pressures is C v [kJ/ (mol??C)] = 0.0252 + 1.547 x 10 ?5? T ? 3.012 X 10 ?9 T 2? where T is in ?C. A quantity of H 2 S is kept in a...
-
A shipping company owns two types of trucks, type A and type B. Each type A truck has 20m3 of refrigerated space and 30m3 of unrefrigerated space, while each type B truck has 20m3 of cooled space and...
-
Four pesticides used in dormant California orchards are chlorpyrifos, diazinon, methidathion, and parathion. Environmental Science & Technology (Oct. 1993) reported the number of applications of...
-
discuss the concept of self-efficacy within Bandura's social cognitive theory and its implications for understanding and fostering motivation in academic, professional, and personal domains?
-
Discuss the advantages of a self-appraisal and how it might be implemented. Differentiate between appraising quantitative and qualitative duties and tasks. What is the three/four tier performance...
-
Describe the importance of the manager/employee relationship in the appraisal process. Discuss various forms of bias in performance appraisals. Differentiate between informal and formal performance...
-
What term from Incoterms 2 0 0 0 would you recommend under each of these scenarios? A transaction wherein an American seller is to deliver the goods on board a ship in New York and arrange for export...
-
Which of the following statements regarding the timing of performance appraisals is true? A. a negative performance appraisal given shortly before layoffs or terminations appears to be pretext B. a...
-
Electromagnetic radiation with a wavelength of 531 nm appears as green light to the human eye. The energy of one photon of this light is 3.74 x 10 19J. Thus, a laser that emits 1.3 x 102J of energy...
-
This year Truckit reported income of $160,000 and received $20,000 of municipal interest. Truckit paid $55,000 in entertainment expenses and $15,000 in fines and penalties Truckit had $50,000 of...
-
Transform the while loop from the previous exercise into an equivalent for loop (make sure it produces the same output).
-
In Germany, large banks are often large lenders and large equity investors in the same firm. For instance, Deutsche Bank is the largest stockholder in Daimler Chrysler, as well as its largest lender....
-
You have collected returns on AnaDone, a large diversified manufacturing firm, and the NYSE index for five years: a. Estimate the intercept (alpha) and slope (beta) of the regression. b. If you...
-
You are the owner of a small and successful firm with an estimated market value of $50 million. You are considering going public. a. What are the considerations you would have in choosing an...
-
Discuss the employment-at-will doctrine.
-
Describe what is meant by retaliatory and constructive discharge and how to defend a claim for unfair discharge.
-
Describe effective hiring practices and the importance of clear communications.
Study smarter with the SolutionInn App