Expected return-what must the beta of this stock be

Assignment Help Financial Management

Reference no: EM13765080

A stock has an expected return of 14.9 percent, the risk-free rate is 5.85 percent, and the market risk premium is 7.6 percent.

Required:

What must the beta of this stock be? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).)

Reference no: EM13765080

Questions Cloud

Focusing on the how of violence : Read the two articles "Shooting in the Dark", and "Focusing on the How of Violence" and write two separate analytical summaries

Determine the net present worth of manufacturing sparkle : Bottled water continues to be a hot market. The ClearWater bottling company has decided to introduce Sparkle, a new line of bottled water. ClearWater expects to manufacture 10,000 bottles of Sparkle every day, 365 days per year. Use an MARR of 12% pe..

Advise brian on the tax consequences : Advise Brian on the tax consequences regarding the above-mentioned transactions for the year 2013/2014 tax year - Advise Morgan Brothers whether the amount of $250,000 is income for their business.

Potential cost of tuition and materials : Consider not only the potential cost of tuition and materials, but also if release time from work will be necessary for your course(s), seminars, or other opportunities you find.

Expected return-what must the beta of this stock be : A stock has an expected return of 14.9 percent, the risk-free rate is 5.85 percent, and the market risk premium is 7.6 percent. What must the beta of this stock be? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g.,..

Unethical police decisions or immoral practices : Research and find a U.S. Supreme Court case that addresses unethical police decisions or immoral practices by the police. Provide a brief synopsis of the case and discuss how the Supreme Court views procedural justice and/or police misconduct

Forward price and the initial value of the forward contract : A one-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $40 $38 and the risk-free rate of interest is; 8% per annum with continuous compounding. What are the forward price and the initial value of the f..

Explain a problem in your community : Explain a problem in your community and how you might solve this problem if you were a police officer? Who might need to be involved in the process

Describe the process of developing and testing hypotheses : In 2-3 paragraphs describe the process of developing and testing hypotheses from our research questions. Provide at least ONE hypothesis from your research topic

User Account

All Pages