According to capm determine the risk-free rate

Assignment Help Financial Management

Reference no: EM132072446

Answer the following question:

The return on the market portfolio is currently 13%. Battmobile Corporation stockholders require a rate of return of 21%, and the stock has a beta of 3.5.

a. According to CAPM, determine the risk-free rate.

b. Is this a risky stock? Explain.

Reference no: EM132072446

Questions Cloud

How much can you withdraw from your savings each month : You retire at age 65 and expect to live another 30 years. On the day you retire, you have $564,500 saved.

What result would you see occurring if the capital markets : What result would you see occurring if the capital markets stopped functioning properly? Do you see any evidence of a breakdown in the system?

What must be the amount of the semiannual deposits : Assume the account continues to offer 12 percent per year compounded semiannually throughout the entire period of deposits and withdrawals.

Make a report recommending the best loan for this client : The client estimates that they will want to own the property between 5 and 10 years, inclusive. Prepare a report recommending the best loan for this client.

According to capm determine the risk-free rate : The return on the market portfolio is currently 13%. Battmobile Corporation stockholders require a rate of return of 21%, and the stock has a beta of 3.5.

The frequency of the sound as the train draws closer : A train is approaching the station. Explain what happens to the frequency of the sound as the train draws closer. What do you hear?

What should the broker recommend if the couple want : After some consideration, the couple decide to invest at most ?$12,000 in the Upper B Superscript plus B-rated bond and at least? $6000 in the AAA bond.

What is the kelvin temperature of the gas : The total average kinetic energy of the gas molecules in the container is equal to the kinetic energy of an 8.0 e-3 kg bullet with a speed of 770 m/s.

Prepare a spreadsheet indicating the value of retirement : Prepare a spreadsheet indicating the value of retirement fund on a yearly basis when retiring at age of 65.

User Account

All Pages