Determining the capital asset pricing model

Assignment Help Finance Basics
Reference no: EM133113498

(Capital Asset Pricing Model)

Breckenridge, Inc., has a beta of 0.82. If the expected market return is 11.0 percent and the risk-free rate is 5.5 percent, what is the appropriate expected return of Breckenridge (using the CAPM)? The appropriate expected return of Breckenridge is %. (Round to two decimal places.)

Reference no: EM133113498

Questions Cloud

Use the extra cash to pay off debt : Do you recommend the company to use the extra cash to pay off debt? How will this proposal affect the company?
What happened and what were the legal ramifications : Identify a real-world example of an organization that has committed fraud. What happened and what were the legal ramifications
What is implied the post-money stock price : You are a venture capitalist considering a $1.80 million investment in LTV in return for 40% equity stake. What is implied the post-money stock price?
What is the required rate of return on bs stock : Stock A stock has a beta of 1.30, and its required return is 10.75%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return
Determining the capital asset pricing model : Breckenridge, Inc., has a beta of 0.82. If the expected market return is 11.0 percent and the risk-free rate is 5.5 percent, what is the appropriate expected re
Major equity indices : A portfolio manager has maintained an actively managed portfolio with a beta of 1.4. During the last year, the risk-free rate was 5% and major equity indices pe
Show balance sheet extract and statement of profit or loss : Show the balance sheet extract and statement of profit or loss extract as of December 31, 2020 if cost incurred to date was Rs. 275
Discuss how they operate in the workplace : Describe in detail two workplace skills you learned during this course and discuss how they operate in the workplace.
Solve for the pre-tax operating income : A commercial bank has the following balance sheet Assets Liabilities Cash 5 Deposits 89 Marketable Securities 10 Subordinary Long Term Debt 1 Loans 80 Equity Ca

Reviews

Write a Review

Finance Basics Questions & Answers

  Corporate financing-long term and short term

Describe the selected topic in relation to a corporate environment. Analyze the roles and responsibilities in making these decisions for the organization.

  Us recent gdp results and trends

Recommend a strategy for enhancing U.S. GDP over the next five years. Give support for your recommendation. Predict the federal fund rate over next five years, indicating the likely impact on financial markets. Provide support for your rationale.

  Primary distinction between mortgage related securities

What is the primary distinction between mortgage-related securities backed by residential mortgages and those backed by commercial mortgages?

  Calculate required rate of return for un-levered firm

The Teenie Tiny Company is currently an un-levered firm with a beta of 1.3925. Since this is a start-up company with significant impact on the social well-being

  What percentage of companys capital structure consists

What percentage of the company's capital structure consists of debt? Round your answer to two decimal places.

  What is the expected return on the portfolio

If the portfolio weighting is 65% of shares and 35% of the risk-free asset, what is the expected return on the portfolio?

  What is the price of a 6-month put on osceola stock

What is the price of a 6-month put on Osceola stock with a strike price of $55? (Round answer to 2 decimal places. Do not round intermediate calculations)

  Compute nominal annual interest rate

Suppose you agree to make 24 deposits of $500 at the beginning of each month into a bank account. At the end of 24th month, you will have $13,000 in your account.

  What is the yield to call

The bonds have a 15-year maturity, but can be called in 10 years at $1,200. What is the yield to call (YTC)?

  Computation of revenue earned during the period

Computation of revenue earned during the period and Calculate the amount of subscription revenue earned by Evans Ltd

  What is the value of the cash flows four years

Assuming an interest rate of 6.5 percent, what is the value of the following cash flows four years from today?

  From tnt delivering a business strategy

1. Explain the terms mission, aims and objectives. Give examples from TNT case and another company of your choice.

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