Question: calculare the expected return on a stock with a beta od 0.64. the risk free rate of return is 2% and the market portfolio has

calculare the expected return on a stock with a beta od 0.64. the risk free rate of return is 2% and the market portfolio has an expexted return of 8%.

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!

1) a portfolio has expected return of 10% and standard deviation of 20%. With a risk free rate of 2% the portfolio has a Sharpe Ration of 0.4. Assuming the expected return and standard deviation stay...

Calculate the expected return on a stock with a beta of 1.64. The risk free rate of return is 4% and the market portfolio has an expected return of 9%. Enter your answer as a percentage

36. (3 Points) A stock has a Beta of 1.4, the risk free rate is 2%, and the expected market return is 9%. What is the expected return on the stock? a. 9.8% b. 11.8% c. 12.6% d. 14.6% 37. (3 points)...

Provide detailed explanation to the following questions. This question is complete. (12 points} Consider the payoff matrix below. The players make their choices simultaneously and without...

Answer the following Topic 6 The following is an accounts receivable aging schedule for Caulfield Lid on 30 June 2019. Customer Total Number of days past due 1-30 31-60 61-90 Over 90 Bela 18,000...

Provide detailed answers to the attached questions.Thank you. A1. Assume that Canada is an importer of televisions and that there are no trade restrictions. Canadian con- sumers buy 1 million...

PLEASE SHOW ME EXCEL FORMULAS WHERE APPLICABLE TO FULLY GRASP CONCEPT. Case #3: Building an efficient portfolio 1. Go to finance.yahoo.com and download monthly prices for S\&P500 and the following 10...

QUESTION 12 Find the intrinsic value of the stock that pays a dividend of $1.34 and has a growth rate of 12% for 4 years then it stabilizes at a long-run growth rate of 4.3%. The stock has a Beta of...

Suppose that the Capital Asset Pricing Model (CAPM) holds. The market portfolio has an expected return of 12% and a standard deviation of 30%. The risk free rate is 2%. Stock A has a standard...

Why do the ERP installation and testing of systems require that experts be involved? Why does the implementation of so many ERP systems face severe challenges or totally fail?

A stone is thrown horizontally from the top of an incline that makes an angle with the horizontal. If the stone's initial speed is v, how far down the incline will it land?

Stone Inc. is a company that purchases goods (e.g., chess sets, pottery) from overseas and resells them to gift shops in the United States. Stone Inc. is which of the following? a. Wholesaler b....

How do you calculate fixed costs and variable costs for the Chisos Mountain Medical Center case study?

3. Briefly describe the main features of Medicare and Medicaid, indicating how each is financed LO24.1

2. What are the twin problems of the health care industry as viewed by society? How are they related? LO24.1

13. What are (a) preferred provider organizations and (b) health maintenance organizations? In your answer, explain how each is designed to alleviate the overconsumption of health care LO24.5