Calculate the beta of the stock

Assignment Help Finance Basics
Reference no: EM132813808

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: EM132813808

Questions Cloud

Calculate net income in year two using variable costing : Calculate net income in year 2 using variable costing, where any difference between budgeted overhead and actual overhead is treated as a fixed cost.
What is the standard deviation of the returns : Question - Ali earned the following returns for 2018 -2020: -10 percent, 10 percent, and 30 percent. What is the standard deviation of the returns
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
Find how many jars of peanut butter and pairs of socks buy : process purchased a total of 42 items (jars of candies and pairs of shoes combined). How many jars of peanut butter and pairs of socks did he buy in 2016?
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.
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?
What the balance in the right-of-use asset at december : On January 1, 2020, The interest rate charged by the lessor was 7%. The balance in the right-of-use asset at December 31, 2020, will be
Calculate the half-year convention : The equipment has a useful life of 4 years with a disposal value estimated at $12,000. Using straight line depreciation, calculate the half-year convention
What elements are present to show it is ethically sound : Discuss if the study is ethically sound. Why or why not. What elements are present, or lacking, to show it is ethically sound. Include at least two to four.

Reviews

Write a Review

Finance Basics Questions & Answers

  What will be the value of their portfolio

If they sell their five rights but keep their stock at its diluted value and hold on their cash, what will be the value of their portfolio?

  Effects of risk and term of a bond on interest rate paid

What are some of the constraints on the recovery and growth of the GSE and private mortgage-backed securities market?

  Why are more organizational structures becoming

Why are more organizational structures becoming flatter and less likely to have boundaries?

  Financial calculator time-value-of-money calculations

Using a Financial Calculator's Time-Value-of-Money Calculations (recommended), solve the following

  What happen to ir if demand for money is increasing

Use a graph to show what happens to the interest rate if the demand for money is increasing while the supply of money is decreasing.

  Prepare historical average and standard deviation for stock

Using the two stocks you selected from Homework #1, identify the Beta for each stock. In your own words, what conclusion can you draw from the stocks' current.

  What are the primary ways to finance a new business

What are the primary ways to finance a new business? How would you expect to finance your business in the first few years?

  How large of an increase in fixed assets will company need

What level of sales could Seattle Coffee have obtained if it had been operating at full capacity? Round your answer to the nearest cent.

  Cost of equity after recapitalization and wacc

What is the cost of equity after recapitalization and WACC? Do not round calculations

  Problem regarding the equilibrium value

1. For the MOS differential pair in Fig. 9.5, specify the value of vid ≡ vG1 /vG2, in terms of VOV , that (a) causes iD1 to increase by 10% above its equilibrium value of I/2.

  What is the annual percentage rate of the loan

What is the annual percentage rate (APR) of the loan? What is the effective cost if you prepay the loan at the end of year five?

  Discuss the advantages and disadvantages of going public

Discuss the advantages and disadvantages of going public.

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