Calculated the expected return for stock

Assignment Help Financial Management
Reference no: EM131582267

The risk free rate equals 3%, the market risk premium equals 8%, and the the beta on Stock J equals 1.35. Calculated the expected return for Stock J. (Enter percentages as decimals and round to 4 decimals)

Reference no: EM131582267

Questions Cloud

Assuming the capm holds : Assuming the CAPM holds, if the risk free rate equals 2%, and the expected return on the market is 10%, then ABC's
Appropriate weighted-average cost of capital each firm : what difference would you expect to see in the appropriate weighted-average cost of capital each firm
Calculate the stock beta : The risk free rate equals 5%, the expected return on the market equals 14%, and the expected return on the stock equals 11.75%. Calculate the stock's beta.
Spin-off from third capital ventures private equity firm : RJIN is a new start up firm created by a private equity spin-off from Third Capital Ventures a private equity firm. What the asset value of the firm is (RJIN)
Calculated the expected return for stock : Calculated the expected return for Stock J.
Bond investment over the three-year period : What is the total dollar of interest that you received from your bond investment over the three-year period?
What is the full price you should pay for this bond : What is the full price you should pay for this bond?
Data-analytic approach to tackle the business problem : Clearly explain your team’s data-analytic approach to tackle the business problem that your client is facing;
More concerned with real returns than with nominal returns : Bond investors should be more concerned with real returns than with nominal returns.

Reviews

Write a Review

Financial Management Questions & Answers

  How much would you have with quarterly compounding

Butcher Credit Bank is offering 6% compounded monthly on its savings accounts. If you deposit $4,000 today, how much will you have in five years? How much would you have with quarterly compounding?

  Estimate the net present value of the project

NPV-financing. Louisville Co. is a U.S. firm considering project in Austria which it has initial cash outlay of $7 million.Estimate net present value of projet

  Share of benefit frame

Share of benefit frame the end of the last money related year to the date of death on the premise of the normal of the three finished years' benefits before the demise.

  What is mary holding period return

Mary purchased 200 shares of Harley Davidson Co. stock at a price of $100.00 six months ago. What is Mary’s holding period return?

  Role of consultant with ten years experience in public funds

You are in the role of a consultant with ten years experience in the public financial management industry. A group of 20 civic leaders are considering forming a new task force and have asked you to prepare a proposal on whether they should build a fa..

  Initial monthly payment on adjustable rate mortgage

The initial monthly payment on an adjustable rate mortgage with a balance of $100,000, an interest rate of 8.5% annually and a term of 30 years will be

  What would be the fair forward price for this contract

S&P 500 index has a dividend yield of 3% today. The current index is trading at $1800 and the risk-free interest rate is 5% per annum with continuous compounding. An investor would like to enter into a short one-year forward contract on the index. Wh..

  About any issues relating to health care coverage

During the period 1960 through the 1990s one never heard very much about any issues relating to health care coverage in the United States.

  What is the clinics float

On a typical day, Park Place Clinic writes $1,000 in checks. - Each day the clinic typically receives $1,000 in checks, which take three days to clear. What is the clinic's float?

  Level payments except for a slightly reduced final payment

The Browns wish to accumulate at least $150,000 at the time of their last deposit in a college fund for their daughter by contributing an amount A into the account at the end of each year for eighteen years. What is the smallest annual payment A that..

  What is company free cash flow for year one of this project

What is the company's free cash flow for year 1 of this project?

  Use his savings toward the down payment on house

Jeremy Denham plans to save $6,200 every year for the next eight years, starting today. At the end of eight years, Jeremy will turn 30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will ..

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