Expected return on the market-risk-free rate of return

Assignment Help Financial Management
Reference no: EM13765788

The stock of Big Joe's has a beta of 1.66 and an expected return of 13.40 percent. The risk-free rate of return is 5.9 percent. What is the expected return on the market?

Reference no: EM13765788

Questions Cloud

What was the average real return on crash-n-burns stock : You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 3 percent, -11 percent, 27 percent, 21 percent, and 14 percent. The average inflation rate over this period was 3.9 percent and the average T-bill rate w..
How do firms benefit from economies of scale : How do firms benefit from economies of scale - What might be some potential disadvantages of being part of a Hilton Hotels and Resorts?
What is the variance of the returns on rtf : If the economy booms, RTF, Inc. stock is expected to return 10 percent. If the economy goes into a recessionary period, then RTF is expected to only return 2 percent. The probability of a boom is 66 percent while the probability of a recession is 34 ..
New type of exercise shoe : Isabel invents a new type of exercise shoe, which she calls the "Super Soul." To protect the name of her product, Isabel should get a
Expected return on the market-risk-free rate of return : The stock of Big Joe's has a beta of 1.66 and an expected return of 13.40 percent. The risk-free rate of return is 5.9 percent. What is the expected return on the market?
Concept from western to non-western cultures : Compared and contrasted local issues vs. best and worst practices globally. Explained why there may be some issues in transferring the concept from western to non-western cultures.
Indicators and fiscal and monetary policies implemented : How is the 2008/2009 economic recession defined? What are the indicators and fiscal and monetary policies implemented
Explain risk management and its associated activities : Explain risk management and its associated activities and defend the need for a risk management plan.
What is the difference between marketing and sales : What is the difference between marketing and sales? Give examples of how marketing solves customer problems. What is meant by market positioning?

Reviews

Write a Review

Financial Management Questions & Answers

  Perform analysis of advertising strategy for midtown motors

Midtown's president believes the television station will consider running the Midtown spot announcement on its highly rated evening news program (at the same cost) if Midtown will consider using additional television announcements.

  Higher debt ratio and interest expense than firm

Firm A and Firm B have the same total assets, ROA and profit margin (greater than 0). However, Firm B has a higher debt ratio and interest expense than Firm A.

  What is sonyas profit or on the transaction

On August 1, Sonya sells short 100 shares of PDQ company stock for $100 per share. On October 2, Sonya closes out the short sale at a cost of $90 per share. What is Sonya's profit or (loss) on the transaction?

  Make-buy decisions on widgets

You are to write a 3-5 page summary to me as VP for Production, stating your observations of XYZ Manufacturing. In this memo, you will include: Make-Buy decisions on widgets and support your decision with made-up numbers.

  What is the purpose of outsourcing

What is the purpose of outsourcing? How can it be helpful to a company's growth? How can it be harmful? Give examples to support your answer.

  Annual coupon interest rate

Tangshan Industries has issued a bond which has a $1,000 par value and a 13 percent annual coupon interest rate. The bond will mature in ten years and currently sells for $1,250. Using this information, the yield to maturity on the Tangshan Industrie..

  Assume the market price of a 5-year bond for margaret inc

assume the market price of a 5-year bond for margaret inc. is 900 and it has a par value of 1000. the bond has an

  Calculate the standard deviations of returns for goodman

Calculate the standard deviations of the returns for Goodman, Landry, and the Market Index. (Hint: Use the sample standard deviation formula given in the chapter, which corresponds to the STDEV function in Excel.) Estimate Goodman’s and Landry’s beta..

  Find the yield to maturity and the current yield

A bond has a $1,000 par value, 20 years to maturity, a 6.5% semi-annual coupon, and sells for $1,037.25. Find the yield to maturity. Find the current yield. Find the yield to call if the bond is called in 6 years with a call price of $1,020

  Current debt-equity ratio-risk level of project

Kelly's uses the firm's WACC as the required return for some of its projects. For other projects, the firms uses a rate equal to WACC plus 1 percent, while another set of projects is assigned rates equal to WACC minus some amount. Which one of the fo..

  Place in the savings account

Camillia plans to go on vacation to Australia 11 years from now. She estimates that she will need $24,186 for the trip. How much does she need to place in the savings account today, assuming that she earns 7.59 percent per year, compounded QUARTERLY,..

  Expected dividend and growth in dividends

Messman Manufacturing will issue common stock to the public for $40. The expected dividend and growth in dividends are $3.50 per share and 3%, respectively. If the flotation cost is 9% of the issue's gross proceeds, what is the cost of external equit..

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