Calculation of fair rate of return by using capm

Reference no: EM1332972

a. Compute a fair rate of return for Intel common stock, which has a 1.2 beta. The risk-free rate is 6 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 16 percent.

b. Why is the rate you computed a fair rate?

Please show all calculations, formulas, and details and send it via Word document.

Reference no: EM1332972

Questions Cloud

Differentiating profitability between the two companies : How can you explain the difference in profitability between the two companies?

Explain how many units of the variable innpout should be : Explain how many units of the variable innpout should be used to maximize profits. What are the maximum profits this firm can earn.

Difference between operation and customer-oriented company : What are differences between an operations and a customer-oriented company and What are some limitations of these strategies?

Advantages and disadvantages of incorporation : Advise Nicola on the advantages and disadvantages of incorporating. If you recommend incorporation, what form of incorporation would be the most appropriate? Why?

Calculation of fair rate of return by using capm : Compute a fair rate of return for Intel common stock, which has 1.2 beta. The risk-free rate is 6 percent, and the market portfolio (New York Stock Exchange stocks) has expected return of 16 percent.

Explain what information about individuals should be kept : Explain What information about oneself should an individual be required to reveal to others and Explain What information about individuals should be kept in databases

Organization-s intellectual asset used without authorization : What are the ethical implications when an organization's intellectual assets are used without authorization?

Developing a new product for shamroll inc : Shamroll inc. is a household products firm that is considering developing a new detergent. In evaluating whether to go ahead with the new detergent project, which of the following statements is most correct?

Employment screening and privacy : Give your opinion on what you believe to be the proper balance between an employer's legitimate right to conduct a pre-employment screening and a prospective employees right to privacy.

User Account

All Pages