Question: How do I calculate this to find the correct answer? *I don't think the answer I have selected is correct. The stock return on Company

How do I calculate this to find the correct answer? *I

How do I calculate this to find the correct answer? *I don't think the answer I have selected is correct.

The stock return on Company X was 0.4 in 2018 and -0.8 in 2019. The market return was -0.4 in 2018 and 0.8 in 2019. The sign of the CAPM beta of Company X is O), and is useful for O. negative; hedging negative; tax shield positive; tax shield positive; hedging

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!

Find the correct answer of the following problems Problem 1(Adopted): Your client was formed on July 1, 2015. It was authorized to issue 600,000 shares of P10 par value ordinary shares and 200,000...

Amazon from weel 1! Calculate essential financial ratios for your company Calculate financial ratios for a second company of your choice Compare the financial ratios of the two companies REQUIRED: do...

The age distribution for politicians in a certain country is shown in the accompanying table. Suppose that a politician is selected at random. Complete parts (a) and (b) below. Click the icon to view...

1 To find the correct answer full Excel file outlining the solution must be submitted. To find the correct answer for Case 1 full Excel file outlining the solution must be submitted. For case 1...

1.Donald Gilmore has $100,000 invested in a 2-stock portfolio. $47,500 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's...

4. (4 Points) Stock X has an expected return of 12% and the standard deviation of the expected return is 20%. Stock Z has an expected return of 7% and the standard deviation of the expected return is...

Stock X has an expected return of 12% and the standard deviation of the expected return is 20%. Stock Z has an expected return of 7% and the standard deviation of the expected return is 15%. The...

The heaters in a spacecraft suddenly fail. Heat is lost by radiation at the rate of 100 kJ/h and the electric instruments generate 75 kJ/h. Initially, the air is at 100 kPa, 25C with a volume of 10...

(Calculating the present value of annuity) What should be the present value of an eight-year annuity payment that pays $1,700 annually given an applicable discount rate of 5 percent?

Question 1 : Weighted Average Cost of Capital CAC Advisory wants to calculate its WACC. You are given the below details for the = m e . = > Firm's marginal tax rate is 2 5 % . = > Target capital...

A major prepared frozen food manufacturer is entering the diet or low-calorie prepared frozen food market with a line of Asian-inspired meals. The manufacturer estimates the Nashville-area 2014...