Question: What two factors determine a stock's total return? Abnormal return Expected return Bond rates Unexpected returnHow can a positive relationship between the expected return on

What two factors determine a stock's total return? Abnormal return Expected return Bond rates Unexpected returnHow can a positive relationship between the expected return on a security and its beta be jus Because the difference between the return on the market and the risk-free rate is Because the value of beta is always positive Because the risk-free rate is equal to zero Because the difference between the return on the market and the risk-free rate is 10

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!

1. Assume stocks A and B have had identical stock prices every day for the past three years. Stock A pays a dividend but Stock B does not. Which one of these statements applies to these stocks for...

1.Let three stocks A, B, and C. The correlation coefficient between rates of return of A and of B equals 1, that is, A,B = 1. As a result a.B,C > 0 b.B,C

Qa. If the one year spot rate is 4% and the forward rates for years 2, 3, 4, 5 are 5%, 7%, 8%, and 6%, respectively, then today's interest rate on a five-year bond should be : 4% 5% 6% 7% 8% One...

Hyde Company is considering two capital investments. Both investments have an initial cost of $6,000,000 and total net cash inflows of $14,000,000 over 10 years. Hyde requires a 20% rate of return on...

I can't seem to get any answers, please help asap! Problem Set #7 1. (a) (b) (c) (d) In a multifactor APT model, the coefficients on the macro factors are often called: systemic risk. firm-specific...

BFIN 200-Homework - Chapter 6 - Risk and Return 6-1: REQUIRED RATE OF RETURN Stock R has a beta of 1.5, Stock S has a beta of 0.75, the required return on an average stock is 13%, and the risk-free...

1. (a) Suppose Carter Chemical Company's management conducts a study and concludes that if Carter expands its consumer products division (which is less risky than its primary business, industrial...

You are given the following set of data: HISTORICAL RATES OF RETURN Year NYSE Stock X 1 - 26.5% - 12.0% 2 37.2 16.0 3 23.8 10.0 4 - 7.2 4.0 5 6.6 11.7 6 20.5 15.1 7 30.6 19.2 The data has been...

1) Suppose the rate of return on 3-month T-Bill is 4%. Suppose also that the expected rate of return required by the market for a portfolio with a beta of 0.8 is 12%. According to the capital asset...

Hi, could you please help me to solve Part A question, which is Risk and Return. It mentioned a, b, c and d four types of questions.I was really confused and don't really understand the first three...

On January 1, 2005, the controller of OBrian Manufacturing Company is planning capital expenditures for the years 20052008. The following interviews helped the controller collect the necessary...

Using the man pages for "ls", "sort", and "head" as references,write a one-line script to list the details of the five largestfiles in the current directory. NOTE: Youcan NOT use the "-S" option of...

Why can Rose make the maximum $ 7 , 5 0 0 deductible contribution to her traditional IRA for 2 0 2 3 when James cannot? Rose has no income. She isn't covered by an employer - sponsored retirement...

What is SQL DROP TABLE Statement??