About how much the return of apple stock

Assignment Help Financial Management
Reference no: EM131023143

Mr. Moore is thinking about how much the return of Apple stock could be given it's beta of 1.11 for a possible investment he wants to make. Other data you have collected: the rate of return on 90 day T-Bills is 1.5%, on 5 year T-Notes it 3% and on the "long bond", the 30-year T- Bond = 6.5%. The Prime is 6%, LIBOR is 5.5% and the average return on the overall stock market is estimated to be 8%.After doing some research and crunching the numbers what would Mr. Moore expect the rate of return on Apple's stock to be? Hint: note that term "beta" - there's a classic formula that uses "beta"!

Reference no: EM131023143

Questions Cloud

What really happened and what the tax ramifications may be : Use the following scenario to complete the memo and letter activities for this lesson. During our annual tax preparation meeting on February 5th, Suzanne indicates that everything is going well and that she and her husband Johnny have moved out of th..
The following data concerns a proposed equipment purchase : The annual average investment amount used to calculate the accounting rate of return is:  a. $62,500, b. $61,000, c. $31,250, d. $64,000, e. $39,950.
What has research determined about the problem : What has research determined about the problem? Have there been any controversies related to the problem?
What are loanable funds : What are loanable funds? Why do businesses demand loanable funds? Why do households supply loanable funds?
About how much the return of apple stock : Mr. Moore is thinking about how much the return of Apple stock could be given it's beta of 1.11 for a possible investment he wants to make. Other data you have collected: the rate of return on 90 day T-Bills is 1.5%, on 5 year T-Notes it 3% and on th..
What do economists call the problem this fan is having : A baseball fan with a Mike Trout baseball card wants to trade it for a Miguel Cabrera baseball card, but everyone the fan knows who has a Cabrera card doesn't want a Trout card. What do economists call the problem this fan is having?
Total value of investment : Briefly explain why the total value of saving in the economy must equal the total value of investment.
Financial intermediaries-provide risk sharing : How does the financial system-both financial markets and financial intermediaries-provide risk sharing, liquidity, and information to savers and borrowers?
How have cognitive models been used to understand the mind : What is a cognitive model, and how have cognitive models been used to understand the mind? Why are sensation and perception important topics to cognitive psychologists?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd