Basic equation for the capital asset pricing model

Assignment Help Financial Management
Reference no: EM131495984

Use the basic equation for the capital asset pricing model ?(CAPM?) to work each of the following problems

a. Find the required return for an asset with a beta of 0.9 when the? risk-free rate and market return are 8?% and 12%?, respectively.

b. Find the ?risk-free rate for a firm with a required return of 15.000?% and a beta of 1.25 when the market return is 14%.

c. Find the market return for an asset with a required return of 15.996?% and a beta of 1.10 when the? risk-free rate is 9%.

d. Find the beta for an asset with a required return of 15.000?% when the? risk-free rate and market return are 10?% and 12.5%?, respectively.

a. The required return for an asset with a beta of 0.9when the? risk-free rate and market return are 8?% and 12%?, ?respectively, is nothing ?%.

?(Round to two decimal? places)

Reference no: EM131495984

Questions Cloud

Why turnover is so prominent in the field of human services : Discuss why turnover is so prominent in the field of human services. Describe the correlation between high turnover and burnout.
Terms of historiographical methods : Paragraph two should be a short statement as to your approach, both in terms of historiographical methods and in terms of sources you will be using.
Optimal risky portfolio has the characteristics : Suppose Optimal Risky Portfolio has the following characteristics:
Calculating annuity values : Calculating Annuity Values. How much will you have if you make deposits for 40 years?
Basic equation for the capital asset pricing model : Use the basic equation for the capital asset pricing model ?(CAPM?) to work.
What is a fusion center : Fusion Centers are one of the latest efforts to share information and intelligence on a national level. What do you think some of the challenges are
Describe three ways how we can use macroeconomic analysis : Directions: Use correct English spelling and grammar. Sources must be cited in APA format. Should be four (4) double-spaced pages; 4 pages A and 4 pages B.
Discussion of international mergers and acquisitions : INSTRUCTIONS & SPECIFICATIONS DIFFERENT DEFINITIONS OF CULTURE and EXPLANATION OF THE DIFFERENT NATIONAL CULTURE FRAMEWORKS
Explain an illustration of production possibilities model : Explain an illustration of the Production Possibilities model, including a summary of what the model is illustrating and the economic implications for economy.

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