Question: hello i need help with this question step by stepplease A stock has an expected return of ( 10.2 % ), the risk-free rate is

hello i need help with this question step by stepplease A stock has an expected return of $ 10.2 \% $, the risk-free rate is $ 4.1 \% $, and the market risk premium is $ 7.2 \% $. What must the beta of this stock be? (Do not round intermediate calcul 2 answers

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!

hello i need help with this question step by stepplease A stock has a beta of $ 1.15 $, the expected return on the market is $ 10.3 \% $, and the risk-free rate is $ 3.8 \% $. What must the...

hello i need help with this question step by stepplease Consider the following information: Calculate the expected return for each stock. (Do not round intermediate calculations. Round the final...

hello i need help with this question step by stepplease Consider the following information: a. Your portfolio is invested $ 30 \% $ each in $ A $ and $ \mathrm{C} $, and $ 40 \% $ in B. What...

hello i need help with this question step by stepplease You own a portfolio that is $ 28 \% $ invested in Stock $ X, 25 \% $ in Stock $ Y $, and $ 47 \% $ in Stock $ Z $. The expected...

hello i need help with this question step by stepplease A portfolio is invested $ 25 \% $ in Stock G, $ 55 \% $ in Stock J, and $ 20 \% $ in Stock $ \mathrm{K} $. The expected returns on...

hello i need help with this question step by stepplease You own a portfolio that has $ \$ 2,650 $ invested in Stock $ A $ and $ \$ 4,450 $ invested in Stock B. If the expected returns on these...

hello i need help with this question step by stepplease Consider the following information: Calculate the expected return. (Do not round intermediate calculations. Round the final answer to 2 decimal...

hello i need help with this question step by stepplease Consider the following information about three stocks: a-1. If your portfolio is invested $ 40 \% $ each in $ A $ and $ B $ and \( 20 \%...

Question 15 pts Grossnickle Corporation issued 20-year, noncallable, 7.1% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What...

Question I would like you to make an effort to calculate the WACC for Marriott overall which requires following a couple of steps: First, we need to unlever Marriott's Equity Beta with the actual...

The cost of direct materials transferred into the Filling Department of Savannah Lotion Company is $ 13,300. The conversion cost for the period in the Filling Department is $ 3,100. The total...

A variation of the indicator dilution method (see preceding problem) is used to measure total blood volume. A known amount of a tracer is injected into the bloodstream and disperses uniformly...

During lessons learned, the team's staff and external suppliers may be involved. The group is looking to cover all of the following topics but which one? AProject strategic approaches that benefited...

Roadworthy Inc. is a bridge construction company. It has been contracted on a $75 million bridge building project in Edmonton. The contract terms specified that the company must complete the project...

Create a new product that will serve two business (organizational) markets. Write a paper that describes your product, explains your strategy for entering the markets, and analyzes the potential...

What are political parties?

Question: The known cost function for a company is C (Q) = 100 + Q2. If the company sells its output in a perfectly competitive market and another company in the industry sells its output at $ 10 a....

Transaction Processing Systems Transaction processing systems (TPS) function to monitor, store, collect and process data generated from various business transactions, because of this there are many...

Determine if the overhead allocated to the product relates to a single plantwide overhead rate method, multiple production department factory overhead rate method, or activity-based costing...

Two-State Option Pricing Model Maverick Manufacturing, Inc., must purchase gold in three months for use in its operations. Mavericks management has estimated that if the price of gold were to rise...

Equity as an Option Sunburn Sunscreen has a zero coupon bond issue outstanding with a $10,000 face value that matures in one year. The current market value of the fi rms assets is $10,500. The...

Equity as an Option Frostbite Thermalwear has a zero coupon bond issue outstanding with a face value of $20,000 that matures in one year. The current market value of the fi rms assets is $22,000. The...