Explain how these estimates would be used to calculate an

Assignment Help Finance Basics
Reference no: EM13573746

Here are alphas and betas for Intel and Conagra for the 60 months ending October 2001.Alpha is expressed as a percent per month.


Alpha

Beta

Intel

0.77

1.61

Conagra

0.17

0.47

Explain how these estimates would be used to calculate an abnormal return.

Reference no: EM13573746

Questions Cloud

Total fixed overhead is 150000 most of the manufacturing : mountaineer products manufactures two types of tents single-wall and double-wall. selected data related to each type of
Herbert exchanges a business machine which has an adjusted : herbert exchanges a business machine which has an adjusted basis of 40000 for a new machine worth 40000. in addition he
You are require to summarize an article that focuses on a : you are require to summarize an article that focuses on a single social issues or problem regarding a social
During 2011 taxpayers decided to sell their residence which : during 2011 taxpayers decided to sell their residence which had a basis of 350000. they had owned and occupied the
Explain how these estimates would be used to calculate an : here are alphas and betas for intel and conagra for the 60 months ending october 2001.alpha is expressed as a percent
Moore companys net income last year was 56000 and cash : moore companys net income last year was 56000 and cash dividends declared and paid to the company stockholders was
Leopard corporation has ordinary income from operations of : leopard corporation has ordinary income from operations of 50000 net long-term capital gain of 20000 and net short-term
Then goldman sachs went looking for buyers they lined up : on may 15 1997 the government of kuwait offered to sell 170 million bp shares worth about 2 billion. goldman sachs was
During the year carolyn lives with torie in his home for : during the year carolyn lives with torie in his home for 10 months and in her home for 2 months. under a

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the significance of the critical ebit can we use

question 1 what is the significance of the critical ebit? can we use it to make the capital acquisition decision?can

  How many units does the firm need to sell to reach

Its contribution margin (price minus variable cost) for each unit is $30. How many units does the firm need to sell to reach the cash break-even point?

  The project generates free cash flow of 540000 at the end

my project requires an initial investment of 389600. the project generates free cash flow of 540000 at the end of year

  What are united''s enterprise and total market values

Consider that United uses the entire £50 million in excess cash to pay a special dividend and what will be the amount of the regular yearly dividends in the future

  What is the current stock price of abc

Firm ABC currently trades at 15 times next year's EPS estimate of $1.50. Historically the stock has traded in a range of 16x to 22x forward EPS. What is the current stock price of ABC, and is the stock price over-valued, under-valued or fairly val..

  Suppose that the current 180-day interbank eurodollar rate

suppose that the current 180-day interbank eurodollar rate is 9 all rates are stated on an annualized basis. if next

  Compute present value of winnings

You have won the $1.4 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday, 78 years from now.

  What must the expected return on the market be

A stock has an expected return of 14 percent, its beta is 1.20, and the risk-free rate is 5.8 percent. What must the expected return on the market be?

  What percentage of the firm will you own after the ipo

Your investment banker advises you that the prices of other recent IPOs have been set such that the P/E ratios based on 2007 forecasted earnings average 20.0. Assuming that your IPO is set at a price that implies a similar multiple, what will your IP..

  What is the present value of this payment

Roy is going to receive a payment of $5,000 one year from today. He earns an average of 6% on his investments. What is the present value of this payment?

  What is the weighted average beta of a portfolio

What is the weighted average beta of a portfolio with $75,000 invested in Company A with a beta of 1.35, $125,000 invested in Company B which has a beta of 1.8, $25,000 in Company C with a beta of .65, and $85,000 in Company D which has a beta of ..

  Generating a negative free cash flow

A company generated free cash flow of 2348 million and paid net interest of 23 million after tax. it paid a dividend of 14$ million and issued shares for 54 million.

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