Question: 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

Calculate the expected return for A Industries which has a beta of 1.90 when the risk free rate is 0.05 and
Year 1 2 3 4 5 6 Rates of Return RA Computer 15 12 -11 10 11 6 Market Index 19 15 6 8 10 12 Compute the beta

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) Year 1 2 3 4 5 6 Rates of Return RA Computer 15 12 -11 10 11 6 Market Index 19 15 6 8 10 12 Compute the beta for RA Computer using the historic returns presented above. (Keep 4 decimal places)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Solution To calculate the expected return for A Industries we can ... View full answer

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!

The following coordinates are written improperly, select the correct version of the coordinates: 06 00' 92" N, 95 59' 87"E

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...

Assume that you recently graduated with a major in finance and that you just landed a job as a financial planner with Barney Smith Inc., a large financial services corporation. Your first assignment...

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...

Explain the differences between an employee and an independent contractor. Who an employee"will" Define" Ultra vires" yofreceunejemplo Summarizes title VII of civil rights of 1964 Which one are...

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...

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.

33. Calculate the expected return for A Industries which has a beta of 1.75 when the risk free rate is 0.03 and ou exect the market return to be 0.11. 11.13% 14.97% 16.25% 22.25% e. 17.0% ANS: E k =...

You have concluded that next year the following relationships are possible. What is your expected rate of return [E(R i )] for next year? Economic Status Probability Rate of Return Weak Economy .25...

Knight Company reports the following costs and expenses in May. Factory profit $15,900 Direct labor $74,100 Factory equipment depreciation 13,950 Sales wages 47,000 Delivery truck depreciation 3,900...

Copper (Cu) is a transition metal. True False QUESTION 2 An atom of the isotope sulfur-31 consists of how many protons, neutrons, and electrons? (p = proton, n = neutron, e = electron) O 15 p, 16 n,...

On February 1 7 , Year 2 , a company had a fire that destroyed a plant. The building and equipment had a net carrying amount of $ 5 5 0 , 0 0 0 as of December 3 1 , Year 1 . The company anticipates...

Shields Manufacturing produces containers for nurseries and landscaping businesses. The company competes based on its low-cost, high-quality products. As the company's expenses have risen, management...

You are an accountant for a defense contractor. The federal government is considering a change of rules for the allocation of research and development costs. The government is asking contractors to...

Hannalinn Corporation operates three divisions-Archer, Barrett, and Corvell. Division managers are evaluated based on the division's return on investment, and historically, the Corvell division has...

Your brother is a physician and has decided to start a home health care agency. The state government will reimburse treatment costs for about half of the patients under a new state-sponsored health...

Ashton Corporation recently announced a bonus plan to reward the manager of its most profitable division. The three divisional managers are to decide which performance measure will be used to...

Capital budgeting is the process of measuring, evaluating, and selecting both short-term and long-term investment opportunities.Group of answer choicesTrueFalse

Bynum and Crumpton Inc. (B&C), a small jewelry manufacturer, has been successful and has enjoyed a good growth trend. Now B&C is planning to go public with an issue of common stock, and it faces the...

The Verbrugge Publishing Company's 2012 balance sheet and income statement are as follows (in millions of dollars): Balance Sheet Income Statement Net...

Andria Mullins, financial manager of Webster Electronics, has been asked by the firm's CEO, Fred Weygandt, to evaluate the company's inventory control techniques and to lead a discussion of the...

An Associated Press article written by Rukmini Callimachi pointed out that Nike, the worlds largest maker of athletic shoes, has started to feature female models who are not the traditional rail-thin...

As the automobile accident rate increases, insurers are forced to increase their premium rates. Companies such as Allstate have recently been running a campaign they hope will result in fewer...

A survey of 777 teenagers between the ages of 13 and 18 conducted by JA Worldwide/Deloitte & Touche USA LLP found that 69% agree that people who practice good business ethics are more successful than...