Solution-Estimate of the capm beta of commercial property

Estimate of the capm beta of commercial property

Assignment Help Basic Computer Science

Reference no: EM131199118

Reddy et al (2013) suggest that the Australian commercial property sector has an average historical return of 9.5% with a historical standard deviation of 8.24% and historical correlation with the market of 0.58. The market price of risk is 6% and the average risk-free rate has been 4%. What is the best estimate of the CAPM Beta of commercial property in Australia?

A. β = 0.33.

B. β = 0.92.

C. β = 1.0.

D. β = 0.58.

Reference no: EM131199118

Questions Cloud

Show the initial point and the new point in the curve : Suppose you start with 10 hours and then decide to spend an additional $30 on tennis. On your curve, show the initial point and the new point. How many additional hours can you get?

How do you think you would handle the final moments : Describe in detail the thoughts and emotions you felt while imagining the scenario. If you did experience this event, how do you think you would handle the final moments? If you did experience this event, how would you describe your life up to this p..

Why would a company use trade secrets to protect their inven : Why would a company use trade secrets to protect their invention? Wouldn't it make more sense to patent something? See attached document Wolfe Electric, Inc. v. Duckworth as an example.

How events affect economies production possibility curve : an economy is faced by the exhaustion of an important natural resource at a time when it is introducing improved technology.how these events will affect the economies production possibility curve

Estimate of the capm beta of commercial property : The market price of risk is 6% and the average risk-free rate has been 4%. What is the best estimate of the CAPM Beta of commercial property in Australia?

What are the equity implications of given difference : Oregon has an income tax but no state sales tax, while Washington has no state income tax but does have a state sales tax.- What are the equity implications of this difference?

Can google take comfort from reaction of stakeholders so far : Why did Google issue the statement of January 12? Can Google take comfort from the reactions of stakeholders so far? Do you expect Google to Exit China?

Advise abc of its fbt consequences : HA3042 TAXATION LAW ASSIGNMENT. Advise ABC of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2016. Assume that ABC would be entitled to input tax credits in relat..

How does learning activity promote different perspectives : How does the instructional approach to your learning activity meet the needs of all your students by recognizing learning styles, interests, and motivation to help achieve academic potential?

User Account

All Pages

Estimate of the capm beta of commercial property

Reference no: EM131199118

Reference no: EM131199118

Questions Cloud

Reviews

Write a Review

Basic Computer Science Questions & Answers

Identifies the cost of computer

Input devices

Cores on computer systems

Prepare an annual budget in an excel spreadsheet

Write a research paper in relation to a software design

Describe the forest, domain, ou, and trust configuration

Construct a truth table for the boolean expression

Evaluate the cost of materials

The marie simulator

What is the main advantage of using master pages

Describe the three fundamental models of distributed systems

Distinguish between caching and buffering

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT