Question: Generally, for CAPM calculations, the value to use for the risk-free interest rate is the: A. medium-term average rate on common stocks. B.medium-term corporate bond

Generally, for CAPM calculations, the value to use for the risk-free interest rate is the:

A. medium-term average rate on common stocks.

B.medium-term corporate bond rate.

C.long-term corporate bond rate.

D. short-term U.S. Treasury bill rate.

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!

Q:

Generally, for CAPM calculations, the value to use for the risk-free interest rate is the: medium-term corporate bond rate. long-term corporate bond rate. short-term U.S. Treasury bill rate....

Q:

CHOICE. Choose the one alternative that best completes the statement or answers the question. Generally, for CAPM calculations, the value to use for the risk-free interest rate is the 1) A) long-term...

Q:

The company cost of capital is the appropriate discount rate for a firm'sA.low-risk projects B.high-risk projects C.average-risk projects D.risk-free projects You are trying to find your firm's cost...

Q:

Generally, for CAPM calculations, the value to use for the risk - free interest rate is the:Question 2 Answera.short - term U . S . Treasury bill rate.b . long - term corporate bond rate.c . medium -...

Q:

Generally, for CAPM calculations, the value to use for the risk - free interest rate is the:Multiple Choice 8 0 1 0 1 ) short - term U . S . Treasury bill rate.long - term corporate bond rate.medium...

Q:

I need your help with this: Can you please quote from the attached chapters / resource if possible? Corporations often use different costs of capital for different operating divisions. Using an...

Q:

Please see the attached file. Here are 9 questions and 8 answers. You have to make paraphrase for all 8 answers. Because 8 answers are written by my class mate. Please wire down Q8 answers. I need...

Q:

Questions were written in the word file named questions, and the question related powerpoint slides were named as slides. Thanks in advance. 1) The common stock of Marielle Machinery will generate...

Q:

give correct only678 16. Consider three stocks: Q. R and S. Beta STD (annual) Forecast for Nov 2008 Dividend Stock Price Q 0.45 35% $0.50 $45 R 1.45 10% 0 $75 S -0.20 40% $1.00 $20 33 2008, Andrew W....

Q:

46) Suppose Autodesk stock has a beta of 2.10, whereas Costco stock has a beta of 0.75. If the risk-free interest rate is 5.5% and the expected return of the market portfolio is 14%, what is the...

Q:

Positive accounting theory explain what is , explain positive accounting and what are the main theories that effect on created positive theory ? explain some application of positive accounting theory...

Q:

TEST 4 Part B Section 1 A standard dose (two tablets) of Tylenol contains 650 mg of acetaminophen. According to data at tylenolprofessional.com, after the medication has been fully metabolized, it is...

Q:

What is the best reason why a patient would not want to access services at the freestanding surgery center?A . Their employer switched to a high deductible health planB. Their health plan no longer...

Q:

last two options for the multiple choice are : performance management development A construction equipment manufacturer, Roswell Corporation, is focusing on becoming a leader in sustainability in...

Q:

The city in which you go to school needs a new administration building. One location being considered for the building site is a public park in the downtown area. If this park area is used, many...

Q:

Technology. You are a customer service representative for the Trax Computer Corporation. The companys office is located in San Mateo, California, but your customers represent all areas of the United...

Q:

Star Electric has provided electricity to the area for many years. Recently, Star upgraded all of its wiring to fiber optics and is expanding into digital cable services. As marketing manager for...