Calculate the beta of a firm that goes up on average

Assignment Help Finance Basics
Reference no: EM133057475

Suppose the market portfolio is equally likely to increase by 15% or decrease by 16%.

Calculate the beta of a firm that goes up on average by 43% when the market goes up and goes down by 21% when the market goes .

Calculate the beta of a firm that goes up on average by 20% when the market goes down and goes down by 27% when the market goes .

Calculate the beta of a firm that is expected to go up? 4% independently of the market. ?(Round to two decimal? places.)

Reference no: EM133057475

Questions Cloud

How much must he invest today : Tony Quincy wants to withdraw $38,600 each year for 12 years from a fund that earns 9% interest. How much must he invest today
What is the project net present value : You are considering a three-year project that costs $1,000, and has expected cash flows of $300 at the end of the 1st year, $400 at the end of the 2nd year, and
What is the dividend yield : The last annual dividend was $2.60 a share. Dividends increase at a constant 3.10 percent per year. What is the dividend yield?
Present value of the expected income stream : At a discount rate of 8%, what is this Present Value of the expected income stream? Hint: Solve for each year's PV then sum.
Calculate the beta of a firm that goes up on average : Calculate the beta of a firm that goes up on average by 43% when the market goes up and goes down by 21% when the market goes .
Prepare monthly cash budgets for January and February : Kayak requires a minimum cash balance of $40,000 at each month-end. Prepare monthly cash budgets for January, February, and March
Covered call positions and selling put options : What is the relationship between covered call positions and selling put options? Do the quoted put and call option prices appear to be consistent with this rela
Explain the meaning of the two coefficients : Q1: Please explain the meaning of the two coefficients: 0.037 and 0.0055.
Explain the net payoff on maturity date : On maturity date the price of IBM is $162.8. What is your net payoff on maturity date? Only maturity date payoffs, you do not have to consider the money you rec

Reviews

Write a Review

Finance Basics Questions & Answers

  Will has been purchasing 25000 worth of new tek stock

will has been purchasing 25000 worth of new tek stock annually for the past 11 years. his holdings are now worth

  Relationship between strategic and financial planning

What is the relationship between strategic planning and financial planning?- What does financial planning involve?

  Evaluating a security

Calculate the following investment's expected return and its standard deviation. Should Potts invest in this security?

  Assignment on the buy vs rent decision

Currently Jackie is renting a two-bedroom condominium in Los Angeles for $3,450 per month. Virtually an identical unit next door became available for sale with an asking price of $620,000, but Jackie believes she could purchase it for $600,000.

  How is net income different from comprehensive income

On the day of the earnings announcement, BMW's stock price rose 1 percent. What other factors would an analyst review in addition to the earnings?

  Evaluate lyft csr efforts

Based on your research on Lyft as well as the various theories of CSR in Brusseau (2012) do you think their CSR efforts are mostly hype or are genuine?

  Discuss the importance of minimum variance portfolios

Explain how Security Market Line is different from Capital Market Line. Identify and discuss the importance of minimum variance portfolios

  Describe the budget shortfall

Describe the budget shortfall. Generate suggestions to address the shortfall.

  Describe the different types of business analysis identify

describe the different types of business analysis. identify the category of users of financial statements that applies

  What is the present value of option

You are the manager of a large corporation. You are asked to select between two different projects that will provide different revenue

  What is the value of the firm and the price per share

The dividend payout is 100%, 10 mill shares outstanding, tax rate is 35%. Cost of equity for the firm is 10%. What is the value of the firm and the price per.

  Calculate the normal forward pie for this firm

Forecasting Earnings Growth and Abnormal Earnings Growth (Easy) The following are earnings and dividend forecasts made at the end of2010.

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