If the risk - free rate is 5 . 5 percent and the risk premium is 7
Fantastic news! We've Found the answer you've been seeking!
Question:
If the riskfree rate is percent and the risk premium is percent, what is the required return?
Note: Round your answer to decimal place.
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
10 You are looking at an investment that will pay $1200 in 5 years if you invest $1000 today. What is the implied rate of interest? A. What Formula would you use to find the answer? Show the formula...
-
In Exercise 3.29, we were dealing with an important particle size distribution with the distribution of the particle size characterized by(a) Plot the density function.(b) Give the mean particlesize....
-
A company usually reports on different types of inventory. Elaborate these and explain how they are different.
-
Effects of Discounts on Sales and Purchases} OBJECTIVE 2 Helm Products sells golf clubs and accessories to pro shops. Gross sales in 2018 were \(\$ 2,850,700\) (Helm's list price) on terms \(2 / 15,...
-
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...
-
Jordan and Sons has an inventory period of 48.6 days, an accounts payable period of 36.2 days, and an accounts receivable period of 29.3 days. Management is considering offering a 5 percent discount...
-
If the linear mass density i.e. mass per unit length of given straight rod as shown in figure is = m 1+- L Then, the coordinate of center of mass * of the straight rod will be 16 (A) L (C) 8 16L (B)...
-
Water, at 2 7 \\ you C , flows with a velocity of 1 0 m / s over a flat plate, which is maintained at a temperature of 8 0 \\ deg C and has a width of 0 . 5 m . The properties of the water in the...
-
Samson Industries manufactures and sells component engine parts for large industrial equipment. The company employs over 1,000 workers for three (3) shifts, and most employees work overtime when...
-
Briefly explain how the media source you currently use influence your decision and opinions.
-
Company produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2013. Conversion costs in each year depend on production capacity defined in terms of D4H...
-
2) Consider air flow (at the film temperature, p=1.2 kg/m and u=2x105 Pa.s, k=0.026 W/m.K, Pr=0.7) around a cylinder with diameter of XX cm. The cylinder surface temperature is 10*XX more than the...
-
Say we have a sequence of A_n i.i.d. random variables with mean zero and some variance. Let's call S_n the sum of all those A_i. According to the central limit theorem, as the number of samples goes...
-
I frequently use NY Times and CNN and am aware of Fox News but I never use it. I visit these sites, NY Times and CNN, a few times a week whenever I have to research something or see something on...
-
The convertible bond has an expected return which consists of an interest yield (10 percent) plus an expected capital gain. We know the expected capital gain must be at least 4 percent, because the...
-
If an asset's life and returns can be positively determined, the maturity of the asset can be matched to the maturity of the liability incurred to finance the asset. This matching will ensure that...
-
This statement is false. A firm cannot ordinarily control its accruals since payrolls and the timing of wage payments are set by economic forces and by industry custom, while tax payment dates are...
Study smarter with the SolutionInn App