Determine the annual rate of return for the first option

Assignment Help Financial Management

Reference no: EM131597734

Suppose Paycheck, Inc., has a beta of 0.77. If the market return is expected to be 13.80 percent and the risk-free rate is 6.80 percent, what is Paycheck’s rA parent can invest $10,000 into a college education fund and receive $50,000 in 18 years, or the parent can invest $10,000 into an account which earns 12% compounded annually. Determine the annual rate of return for the first option and determine which option the parent should choose.isk premium?

Reference no: EM131597734

Questions Cloud

What date was the loan repaid : An amount of $416.98 settles the debt. On what date was the loan repaid?

What is amount of net working capital : Your firm has total assets of $4,900, fixed assets of $3,200, long-term debt of $2,900, and short-term debt of $1,400. What is the amount of net working capital

What is the amount of net working capital : Your firm has total assets of $4,900, fixed assets of $3,200, What is the amount of net working capital?

Determine the nominal rate earned on the investment : If interest is computed every three months, determine the nominal rate earned on the investment.

Determine the annual rate of return for the first option : Determine the annual rate of return for the first option and determine which option the parent should choose.isk premium?

What waivers does the application contain : Obtain an employment application and background check policies and procedures from a company with which is known.

Describe your strengths and aspects of your public speaking : This would include any occasion from classroom presentations to wedding orations-Describe your strengths and aspects of your public speaking that could use

Explain importance of training after software is implemented : Create a 3-page paper that explains the importance of training and support after software is implemented. Format your paper according to APA guidelines.

What nonpharmacological treatment would you suggest : Is there any additional information you would want to collect?What treatment will you recommend?

User Account

All Pages