A stock has an expected return of 12 If the risk free return is 5 , and the market risk premium (MRP) is 8 , what is the beta of this stock 0 50 0 88 0 25 0 88 ...

ANSWER b 088 Calculation of market expected return Using CA ...

A stock has an expected return of 12%. If the risk-free return is 5%, and the market

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

Question:

A stock has an expected return of 12%. If the risk-free return is 5%, and the market risk premium (MRP) is 8%, what is the beta of this stock?

0.50
0.88
0.25
-0.88

Related Book For answer-question

A First Course in Probability

ISBN: 9789332519077

9th edition

Authors: Sheldon Ross

See More Books

Posted Date: Jan 22, 2021 10:05 PM

See More Questions

The cabin of an aerial tramway is suspended from a set of wheels that can roll freely on the support cable ACB and is being pulled at a constant speed by cable DE. Knowing that Î± =...
From a set of n randomly chosen people, let Eij denote the event that persons i and j have the same birthday. Assume that each person is equally likely to have any of the 365 days of the year as his...
From a set of streptonignic dosorcsponse data. an experimenter desires to develop a relationship between the proportion of lymphoblasts sampled that contain aberrations and the dosage of...
Wical Rental Management Services manages four apartment buildings, each with a different owner. Wicals CEO has observed that the apartment buildings with more expensive rental rates tend to require...
In the United States, say gasoline costs consumers about $2.50 per gallon. In Italy, say it costs consumers about $6 per gallon. What effect does this price differential likely have on a. The size of...
Radial flow between parallel disks (Fig. 3B.10). A part of a lubrication system consists of two circular disks between which a lubricant flows radially. The flow takes place because of a modified...
It looks to me that you have devoted everything to this company and they have treated you badly. Is that right?
The activities described by the following table are given for the Howard Corporation in Kansas: a) Draw the appropriate AON PERT diagram for J. C. Howards management team. b) Find the critical path....
Q2 If Z is a normal N (0, 1), then the X = tz; process is continuous and is marginally distributed as a normal N (0, t). Is X a Brownian motion?
For Youth Agency (FYA) is a voluntary health and welfare organization that provides counseling and recreation programs for youthful offenders and delinquents. FYAs programs are financed through a...
How well do you think that Jack Welch's performance review system evaluated employee job performance (as we have defined it in this chapter)? Which specific dimensions of job performance do you think...
Innovation is the key to business growth and competitive advantage. As such, we must create conditions in which innovation can strive in organizations. A starting point is to explore the different...
Use the distributive property to remove the parentheses. (5a-4a +5) 10a Simplify your answer as much as possible.
While in the community, Miss Nelson records whether or not Ethan is able to independently perform each step of the shopping task analysis. This is an example of what recording procedure? Question 46...
What is the difference between job specifications, job description, and a job posting? Provide an explanation for your response.
Reddington Enterprises is considering the two capital budeting projects with the following cash flows that have a WACC of 11%. Year Redd Wine Vineyards Kaplan Cleaners -200,000 -200,000 1 50,000...
In the context of effective presentations, analyze the role of contrast as a design principle. What is the primary purpose of using contrast in presentation design? Select the correct response: To...
Find the work done in pumping all the oil (density S = 50 pounds per cubic foot) over the edge of a cylindrical tank that stands on one of its bases. Assume that the radius of the base is 4 feet, the...
Show that X is stochastically larger than Y if and only if E[f(X)] E[f(Y)] for all increasing functions f . Show that X st Y, then E[f(X)] E[f(Y)] by showing that f(X) st f(Y) and then using...
Let Z be a standard normal random variable Z, and let g be a differentiable function with derivative g. (a) Show that E[g(Z)] = E[Zg(Z)] (b) Show that E[Zn+1] = nE[Zn1] (c) Find E[Z4].
Suppose that you are playing blackjack against a dealer. In a freshly shuffled deck, what is the probability that neither you nor the dealer is dealt a blackjack?
Describe and compare the properties of the least squares and generalized least squares estimators when heteroskedasticity exists.
Test for heteroskedasticity using a Goldfeld-Quandt test applied to (a) two subsamples with potentially different variances and (b) a model where the variance is hypothesized to depend on an...
Explain why the linear probability model exhibits heteroskedasticity.

A stock has an expected return of 12%. If the risk-free return is 5%, and the market

Question:

Expert Answer:

ANSWER b 088 Calculation of market expected return Using CA... View the full answer

A First Course in Probability

Students also viewed these mechanical engineering questions