Question: The realised return from security-DTX is 20.29%. The expected market return is 12.38%. If the risk-free rate is 3.01% and the beta coefficient for the

The realised return from security-DTX is 20.29%. The expected market return is 12.38%. If the risk-free rate is 3.01% and the beta coefficient for the security-DTX is 1.14. Find the reward-to-risk ratio for the security-DTX.

[Round the final answer to two decimal places. If your answer is 12.34%, write only 12.34]

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!

The realised return from security-DTX is 15.95%. The expected market return is 13.32%. If the risk-free rate is 5.69% and the beta coefficient for the security-DTX is 1.21. Find the reward-to-risk...

Task This case is an application of a valuation method, the dividend discount model, for PepsiCo. In this case, students will learn how to use a company's dividend estimates in the coming years to...

Complete tabs 7.2, 7.5, 7.15, 7.19, and 7.24 in the attached Chapter 7 Excel spreadsheet. Complete tabs 8.1, 8.6, 8.9, 8.11, and 8.26 in the attached Chapter 8 Excel spreadsheet. An EXAMPLE tab is...

Suppose you have the following historical data on the market return, and the cash flows generated by a private firm. Year Market Return Private Firm Cash Flow 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16...

Help me answer these please i need to prepare. show work please. What exactly do you need to help answer this study guide? board Font Paragraph Voice 1. All other factors remaining the same, the U.S....

1. Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method. 2. What do you estimate the company?s WACC? Please...

I need question one answered. Attached are documents from the chapter to help add in the question. A 1 D E F Final Examination FINC 5880 3 5 6 7 8 9 10 11 C Question 6. (15 points) Your portfolio is...

Find the average daily market return (return for Al-Quds index) Find the average daily return for BoP Find the average daily return for PALTEL Find the expected daily return for PEC Find the standard...

Hello This is related to Course BUS5440. I need help with the following project:- OCS Project 1) These are the instructions given in my class to do this project:- The OCS project requires you to...

The data is monthly data from July 1926 until January 2016 for the following series: the excess return on the market (Mkt-RF), the performance of small stocks relative to big stocks (SMB, Small Minus...

Juan is making a collage, and he planned to form a circle by putting together various %3D pieces of construction paper. Given the formula of the area of the circle A = ar2. (a) Find the inverse of...

Suppose that LilyMac Photography has annual sales of $230,000, cost of goods sold of $165,000, average inventories of $4,500, and average accounts receivable of $25,000. Assuming that all of LilyMacs...

the netting process for capital gains losses with 0 - 1 5

Draw a ladder diagram of state X 1 and X 2

=+Should people's conscience warn them of avoidable problems the brand can prevent?

=+4. Choose the most effective point of view. Should the brand be bragging about its features, design awards, or customer service rewards?

=+a. Initiator: suggests buying or trying the product or service. b. Influencer: encourages or dissuades the final shopper. c. Decider: makes the final purchasing decisions.