Expected rate of return on the market portfolio

Assignment Help Financial Management
Reference no: EM13947045

If the expected rate of return on the market portfolio is 15% and T-bills yield 4%, what must be the beta of a stock that investors expect to return 12%? (Round your answer to 4 decimal places.)

Reference no: EM13947045

Questions Cloud

About the time value of money problem : Time value of Money problem. Use present value to determine how much financial difference there is between the following two car buying strategies. Assume both buyers purchase cars immediately and then follow their respective car buying strategies. W..
Project under consideration has an internal rate of return : A project under consideration has an internal rate of return of 16% and a beta of 0.8. The risk-free rate is 6%, and the expected rate of return on the market portfolio is 16%. Calculate the required return
Multiple linear regression models to predict total revenues : A healthcare executive is using multiple linear regression models to predict total revenues. She has decided to include both patient length of stay and insurance type in her model. Patient length of stay is measured in days. How many parameters shoul..
European call option or a european put option : Compute the price of an American put option with strike K=110 and maturity T=.25 years. Do the call and put option prices of Questions 1 and 2 satisfy put-call parity? Compute the fair value of a chooser option which expires after n=10 periods. At ex..
Expected rate of return on the market portfolio : If the expected rate of return on the market portfolio is 15% and T-bills yield 4%, what must be the beta of a stock that investors expect to return 12%?
Calculate the best-case and worst-case NPV figures : We are evaluating a project that costs $1,180,000, has a ten-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 66,000 units per year. Calculate the best-case an..
What is the standard deviation of these returns : The common stock of Air United had annual returns of 13.7 percent, 4.8 percent, -6.7 percent, and 27.9 percent over the last four years, respectively. What is the standard deviation of these returns?
Preferred stock expected return : You are planning to purchase 200 shares of preferred stock and must choose between Stock A and Stock B. Stock A pays an annual dividend of $5.25 and is currently selling for $38. stock B pays an annual dividend of $5.05 and is selling for $40. If you..
Pay an annual dividend : Next year, Jensen’s will pay an annual dividend of $2.75 per share. The company has been reducing the dividends by 10 percent annually. How much are you willing to pay today to purchase stock in this company if your required rate of return is 11.5 pe..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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