Calculate stock expected rate of return using the capm

Assignment Help Electrical Engineering
Reference no: EM132524316

Use the following betas for several companies to calculate each stock's expected rate of return using the CAPM. Assume the risk-free rate of interest is 4%. Use a 6% risk premium for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Company - Beta
Catepillar - 1.68
Apple - 1.32
J & J - 0.51
Edison - 0.23

Reference no: EM132524316

Questions Cloud

Find the size of quarterly payments : A company wants to accumulate 8.000 TL at the end of 5 years. It starts quarterly payments in a bank account which pays J4=9%.
Explain what sources of capital are available to it and why : ABC Company ABC is a start-up company. Explain what sources of capital are available to it and why?
List and explain investors motivation for investing in stock : List and explain investors' motivation for investing in stocks, bonds, preferred shares, and convertibles, based on the characteristics of each of these financi
Trait theories of leadership : As a leader, you often need to display or clarify a concept. A matrix is a grid that contains information and offers a visual model of ideas.
Calculate stock expected rate of return using the capm : Use the following betas for several companies to calculate each stock's expected rate of return using the CAPM. Assume the risk-free rate of interest is 4%.
What pinklakes sales are closest to : Pinklake Company has a 2.5% return on average assets of $350,000 and a net profit ratio of 10%. What Pinklake's sales are closest to?
Discuss using environmental management : You have been appointed as the new environmental manager for Microsoft. In a blog post to your key stakeholders, discuss using environmental management
What would be effect of abc return on net operating assets : what would be the effect of ABC return on net operating assets of adopting the proposed customer royalty program? Show detail calculation
What beavers net profit for the year was closest to : What Beavers Net Profit for the year was closest to? Beaver Company's records have recently been destroyed by fire. The information was able to be saved

Reviews

Write a Review

Electrical Engineering Questions & Answers

  What is the difference between d flip-flop and j-k flip-flop

What is the difference between a D flip-flop and a J-K flip-flop How does the number of inputs affect the possible synchronous states of a flip-flop (Set, Reset, Hold, Toggle)

  Neural network involving a single hidden neuron

Figure P4.1 shows a neural network involving a single hidden neuron for solving the XOR problem; this network may be viewed as an alternative to that considered in Section 4.5. Show that the network of Fig. P4.1 solves the XOR problem by constucti..

  Describe the operation and characteristics and applications

Thyristors are considered the workhorses of power electronics. -Describe the operation, characteristics, and applications of two key types of thyristors.

  What is the speed in the london-new york direction

At the altitude the airplane flies there is a wind, blowing horizontally from north to south (negative y direction) at a speed of 100 km/h.

  Derive the closed-form expression for the impulse response

Derive the closed-form expression for the impulse response h(n), by iteration, of the system governed by the difference equation, with input x(n) and output y(n). List the values of the impulse response h(n) at n = 0, 1, 2, 3, 4, 5.

  Part a -analogue communication1write a brief explanation of

part a -analogue communication1.write a brief explanation of the principles of the super-heterodyne receiver. nbspit

  To what value should the 2 a source be changed to reduce vx

(a) Using superposition, determine the voltage labeled vx in the circuit represented. (b) To what value should the 2 A source be changed to reduce vx by 10% (c) Verify your answers by performing three dc sweeps in PSpice.

  When to replace zener shunt regulator with an appropriate ic

Desired D.C. Output : 10 V Load Variation: 0.3 kilo-ohms - 10 kilo-ohms Ripple Factor: Less than 0.1% for 2 kilo-ohms load Load Regulation: Better than 3 mV for a 1 mA change in load current

  Why would blocking imports from a country such as china

Donald Trump's claim that imports take away jobs and lower American's well being. Why would blocking imports from a country such as China (or Canada) be unlikely to increase employment and well being in the US?

  What is the percentage regulation of the supply

If a power supply has a no-load voltage output of 100V and a 96V output under full load, what is the percentage regulation of the supply?

  Describe what will happen if a shunt motor experiences loss

Sketch the theoretical torque vs. speed characteristics for a series, shunt, and compound connected DC motor. Describe what will happen if a series motor is run under no load conditions.  describe what will happen if a shunt motor experiences a lo..

  For the network of given figure calculate va

For the network of given figure: - Determine RT, - Calculate Va, - Find V1.-  Calculate V2.-  Determine I (with direction).

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