Evaluate expected return, Evaluate its expected return and

Evaluate expected return

Reference no: EM1344432

You notice that the risk-free rate is 8% and the market expected return is 14%. If the stock you are aiming at has a beta of .60. Using the CAPM, evaluate its expected return and at the same time you notice that another stock has an expected return of 20%, but the beta is unknown. Calculate the beta.

Reference no: EM1344432

Questions Cloud

Multiple choice questions based on fixed and variable costs : Select the best answer for each of the following:

Evaluate the importance of the tractors life on npv : Given this discussion, the CFO asks you to prepare a scenario analysis to evaluate the importance of the tractor's life on NPV.

Explaining data-driven multicast routing paradigm : The data-driven multicast routing paradigm works best on local networks that have low delay and excess capacity, while the demand driven paradigm works best in a wide are environment.

Explain and identify the types of cost : Briefly explain and identify the three types of cost estimates. Cite any pertinent examples from your own experience in working with these types of cost estimates.

Evaluate expected return : Evaluate its expected return and at the same time you notice that another stock has an expected return of 20%, but the beta is unknown

Program-customer-s names phone numbers in alphabetical order : Load file into parallel arrays and display list of customers' names and phone numbers in alphabetical order.

Find dollar amount of the maintenance margin : An American firm sells yen futures contracts to cover possible exchange losses on its export orders denominated in Japanese yen. Amount of the initial margin is $20,000.

Prepackaged bankruptcy : Which of following isn't advantage of prepackaged bankruptcy?

Explain what is the actual rate : Explain what is the actual rate the payday loan business is charging on its loans?

User Account

All Pages