The common stock of Alpha Gamma has an expected return of 12.6 percent. The risk-free rate is

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

Question:

The common stock of Alpha Gamma has an expected return of 12.6 percent. The risk-free rate is 3.5 percent and the expected market return is 12.0 percent.

What is the beta of this stock?

Related Book For answer-question

International Financial Reporting and Analysis

ISBN: 978-1408075012

5th edition

Authors: David Alexander, Anne Britton, Ann Jorissen

See More Books

Posted Date: Jun 13, 2023 05:43 AM

See More Questions

1. Security A has expected return of 17.6% and beta of 1.4. If the risk-free rate is 6%, what is the reward-to-risk rate for Security A? Question 2 The common stock of Detroit Engines has a beta of...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
1 If your client is not knowledgeable about the market, you should ____ versus comparable portfolios. increase the frequency of trading increase the risk of the portfolio decrease your time with the...
Radon levels in a building interior are recorded at 8 pCi/L. What are the U.S. Environmental Protection Agency recommendations for this level?
A metal strip 6.50 cm long 0.850 cm wide, and 0.760 mm thick moves with constant velocity v through a uniform magnetic field B = 1.20mT directed perpendicular to the strip , as shown in Figure. A...
Without doing detailed calculations, arrange the following electromagnetic radiation sources in order of increasing frequency: (a) A red traffic light; (b) A 91.9 MHz radio transmitter; (c) Light...
Which of the following would not likely motivate management to time the write off of impaired assets in the current period? a. Current unaudited net income is abnormally high in relation to prior...
Presented below is the trial balance of Thompson Corporation at December 31, 2012. A physical count of inventory on December 31 resulted in an inventory amount of $64,000; thus, cost of goods sold...
The Indian Civil Rights Act confers specific rights on persons subject to tribal jurisdiction, including the right to equal protection of the laws. Some tribal membership codes make distinctions...
These data give monthly returns for stocks of three familiar companies: Disney, Exxon, and McDonalds from January 1990 through December 2005. (a) Describe and contrast histograms of the three...
: Forever Young Game Stores (FYG) has taken a physical count of its inventory at March 31, its fiscal year- end. After reviewing the accounting records and documentation, the following items have...
The 52-g arrow is launched so that it hits and embeds in a 1.55kg block. The block hangs from strings. After the arrow joins the block, they swing up so that they are 0.49 mm higher than the block's...
Using circular motion to approximate elliptical orbits, how can you describe the motion of planets, moons (natural satellites) and satellites (artificial satellites) using mathematical...
Suppose you are viewing a diffraction pattern created by green laser light ( = 450 nm), through double slits that are 0.09 mm apart. The displacement between the bright spots is 2 cm. What is the...
The sound level measured in a room by person watching a movie on a home theater system varies from 55 dB during a quiet part to 85 dB during a loud part. Approximately how many times louder is the...
Calculate how much energy can be produced by the complete annihilation of 1.0 kg of mass. How much would the rest energy in question 2 cost at the typical utility price of $0.12/kWh?
A new product was manufactured by Shobha Ltd. and was placed for sale in three regional markets for launching it nationally. Three prices were selected for testing each market. Selected Prices (Sh.) ...
Les has collected stamps in his spare time for years. He purchased many of his stamps at a price much lower than the current market value. Les recently lost his job as a carpenter. Since his wife...
Look up the PE ratios of several airlines; what do you observe? How does the market value the prospects of each of these companies? Do the underlying financial statements confirm the market...
Can the receipt of a government grant create a liability?
At 31 March 2007, the present value of AZB's pension obligation is $1 634 000. The fair value of the pension plan assets is $1 337 000. Unrecognized actuarial losses are $224 000. What is the amount...
Describe how partial and circular reasoning can be helpful or harmful in resolving ethical dilemmas.
Describe the various legal risks for nurses.
Describe the various roles of advanced practice nurses.

The common stock of Alpha Gamma has an expected return of 12.6 percent. The risk-free rate is

Question:

Expert Answer:

The detailed ans... View the full answer

International Financial Reporting and Analysis

Students also viewed these finance questions