When calculating CAPM, what do we use in place of the risk - free rate? Answers: Yield

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

Question:

When calculating CAPM, what do we use in place of the risk

-

free rate?

Answers:

Yield to Maturity

10 -

year Treasury Bond Return

Market Risk Premium

Posted Date: May 18, 2024 06:12 PM

See More Questions

Consider the integral I = f(x) da where f(x) is the improper rational function (i) Use long division to rewrite f as the sum of a regular polynomial and a proper rational function. (ii) Factorise the...
It is common for supermarkets to carry both generic (store-label) and brand-name (producer-label) varieties of sugar and other products. Many consumers view these products as perfect substitutes,...
A force of $9 \mathrm{~N}$ is required to tow a 1:50 ship model at $4.8 \mathrm{~km} / \mathrm{h}$. Assuming the same water in towing basin and sea, calculate the corresponding speed and force in...
NOPAT is the amount of net income a company would generate if it had no debt and held no financial assets. NOPAT is a better measure of the performance of a company's operations because debt lowers...
La-Z-Boy Inc. is one of the worlds largest manufacturers of furniture and is best known for its reclining chairs. The following data (in thousands) were adapted from recent financial statements:...
tion he following piecewise function, evaluate f(-3). 4x - 8 x
Problem 14-23A (Algo) Preparing a master budget for retail company with no beginning account balances LO 14-2, 14-3, 14-4, 14-5, 14-6 Walton Company is a retail company that specializes in selling...
The financial statements for Highland Corporation included the following selected information: Common stock Retained earnings Net income $ 465,000 $ 730,000 $ 1,110,000 Shares issued 93,000 Shares...
Project Investment ($) NPV ($) A 135,000 6000 B 200,000 30,000 125,000 20,000 D 150,000 2000 E 175,000 10,000 F 75,000 10,000 G 80,000 9000 H 200,000 20,000 I 50,000 4000 2. Assume you have the above...
Enviro Company issues 10.50%, 10-year bonds with a par value of $430,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 7.50%, which implies a selling...
Case Scenario: Imagine you are a project manager overseeing a team of software developers working on a critical project with a tight deadline. Two team members, Alex and Sarah, have been clashing...
Treasury bill yield is 10%, ABC company's expected return for the next year is 18%, beta of ABC company is 2. If everything is in equilibrium as required by CAPM, what is the market's expected return...
If the nominal rate of interest is 12.28% and the real rate of interest is 7.37%, what is the expected rate ofinflation? The expected rate of inflation is %. (Round to two decimalplaces.)
Floyd Distributors, Inc., provides a variety of auto parts to small local garages. Floyd purchases parts from manufacturers according to the EOQ model and then ships the parts from a regional...
You have been speaking to a friend who owns a small business, and she has said that she has read something about strategic management and that no modern business can afford not to get involved with...
Jones Dairy Ltd (Jones) operates a doorstep fresh milk delivery service. Two brothers carry on the business that they inherited from their father in the early 1980s. They are the businesss only...
Management accounting information should be understandable. As some managers have a poor knowledge of accounting we should produce simplified financial reports to help them. To what extent do you...

When calculating CAPM, what do we use in place of the risk - free rate? Answers: Yield

Question:

Expert Answer:

Students also viewed these finance questions