Calculate the beta of the stock

Assignment Help Finance Basics
Reference no: EM132813703

Suppose the market portfolio tends to increase by 36% when the economy is strong and decline by 17% when the economy is weak. A stock's return is 47% on average when the economy is strong and -20% when the economy is weak. Calculate the beta of the stock.

Reference no: EM132813703

Questions Cloud

What is total amount paid for the copper : What is total amount paid for the copper after taking into account the gains or losses on the futures contracts? Each copper futures contract is for delivery
What amount of gain or loss is recognized : What amount of gain or loss is recognized by Mulberry Corporation and by Anar with respect to the distribution of the land
What consider to be a sexual identity-related problem : Identify what you consider to be a sexual identity-related problem or issue that is of importance to you and to society and culture.
What is the convenience yield : The spot price of a commodity is $50 per unit. The continuously compounded interest rate is 6%, the storage costs are 0.5% of the price of asset per annum
Calculate the beta of the stock : A stock's return is 47% on average when the economy is strong and -20% when the economy is weak. Calculate the beta of the stock.
Compare disadvantage of act-utilitarianism and virtue ethics : Compare the advantages and disadvantages of act-utilitarianism and virtue ethics. Which do you think is the better theory? How would combine the two approaches
Estimate the intrinsic value of Firm X common shares : If Firm X's required return on equity is 11 percent, estimate the intrinsic value of Firm X's common shares today based on the two-stage growth model
Explain corrigans model of the stages of stigma : Briefly explain Corrigan's model of the stages of stigma and his recommendations and hierarchy about recovery. Explain whether Delle's experience follows.
What is the forecasted earnings for alpha investments : If the appropriate industry PE for this type of company is 5. What is the forecasted earnings for Alpha Investments?

Reviews

Write a Review

Finance Basics Questions & Answers

  How much will you be willing to pay for the stock

If you required return on this investment is 9%, how much will you be willing to pay for the stock?

  Find equivalent annuity technique

Kindly explain a situation in reality where the analyst would need to adjust for unequal lives by using the equivalent annuity technique?

  Lower-partial standard deviation as a measure of risk

List two reasons why an investor may use lower-partial standard deviation as a measure of risk, instead of standard deviation.

  Compute the value of the bond

A company has a bond issue outstanding that pays $150 annual interest plus $1000 at maturity. The bond has a maturity of 10 years. Compute the value of the bond when the interest rate is 5%, 9%, and 13%. Describe the pattern and the type of risk t..

  If a corporation sold x units of product for y each and had

if a corporation sold x units of product for y each and had m in total fixed and l in total variable costs write

  The project has the same risk as necs existing businesses

national electric company nec is considering a 49 million project in its power systems division. tom edison the

  Determination of expenses associated with activities

Locate the legal authority governing the determination of expenses associated with activities entered into for profit and advise Nina with regard.

  Calculate the total fees you will pay on loan commitment

A loan commitment of $4.33 million with an up-front fee of 90 basis points and a back-end fee of 40 basis points. The take-down on the loan is 50 percent.

  How does the notion of risk and return govern financial

1.how does the notion of risk and return govern financial managers? what are the major assumptions of modern portfolio

  Most recent annual reporting period

What are the company's total current liabilities at the end of the previous annual reporting period?

  Calculate the firm free cash flow

The purpose behind these studies is: (1) help you develop a strong awareness of the financial structure of depository financial institutions

  Difference between foreign bonds and eurobonds

An Australian firm wishes to make a debt issue. Explain to its CEO the difference between foreign bonds and Eurobonds.

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