Find out the expected return of stock a

Assignment Help Finance Basics
Reference no: EM132509540

Suppose the CAPM holds. The risk-free rate is 2%, and the expected return of the market portfolio is 10%. Beta of Stock A is 1.2. Find out the expected return of Stock A.

Reference no: EM132509540

Questions Cloud

Equivalent annual annuity of the gsu-3300 : The UGA-3000 produces incremental cash flows of $29,865.00 per year for 9 years and cost $126,092.00. The firm's WACC is 7.10%.
Implementation plan for business : What does the strategy, mission, and organizational structure say about the company? What are the company's short-term and long-term goals?
What is the maximum cash offer kkr : What is the maximum cash offer KKR should make if the projected synergies were worth $9 billion?
How many units must yvonne company sell in order : How many units must Yvonne Company sell in order to reach a TARGET PROFIT OF $30,000?
Find out the expected return of stock a : Suppose the CAPM holds. The risk-free rate is 2%, and the expected return of the market portfolio is 10%. Beta of Stock A is 1.2.
Calculate total cost assigned under a traditional costing : Calculate the total cost assigned under an activity-based costing system. Calculate the total cost assigned under a traditional costing
How much do you have to deposit : How much do you have to deposit into the account 12.00 years from today? Round 2 Decimal Places
Find the revenue and marginal revenue functions : Find the revenue and marginal revenue functions [Hint: revenue is price multiplied by quantity i.e. revenue = price × quantity]
What is the company net operating income : What is the company's net operating income (loss) under absorption costing? What is the unit product cost under absorption costing?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the standard deviation of this portfolio expressed

The average covariance between the assets is 0.118. What is the standard deviation of this portfolio expressed as a percentage to three decimal places?

  How much must be deposited

You would like to have 45,000 in 11 years. To accumulate this you plan to deposit an equal amount each year which would earn 5% interest compounded. The first payment will be made at the end of the year.

  Describe the websites applications or multimedia resources

How do healthcare providers use these resources to enhance their products and services?

  A portfolio of bonds consists of five bonds whose default

a portfolio of bonds consists of five bonds whose default correlation is zero. the one-year probabilities of default of

  Determining growth rate for the company stock price

The stock price of Baskett Co. is $53.50. Investors require a return of 13 percent on similar stocks. If the company plans to pay a dividend of $3.40 next year.

  Compute the after-tax cost of purchasing

It would be depreciated under MACRS using a 5-year recovery period. The firm would pay $5,000 per year for a service contract that covers all maintenance costs. There is no salvage value. Q2. Compute the after-tax cost of purchasing.

  Which machine would you choose

Projects with different lives: You are trying to choose between purchasing one of two machines for a factory. Machine A costs $15,000 to purchase.

  Compute one irr value

This project has two IRR's, namely  percent and  percent, in order from smallest to largest. (Note: If you can only compute one IRR value, you should input that amount into both answer boxes in order to obtain some credit.) (Negative amount should be..

  What was the average annual rate of change in the price

By 1990, that figure had risen to $123,000. What was the average annual rate of change in the price of houses over this time period? Select one: a. 5.95% per year b. 3.42% per year c. 10.12% per year d. 12.36% per year.

  Burk tires just paid a dividend of d0 132 analysts expect

burk tires just paid a dividend of d0 1.32 . analysts expect the companys dividend to grow by 30 this year by 10 in

  Balloon payment on your house five years

You have to make a balloon payment on your house five years from now of $15,000. If money can earn an average of 6 percent a year for the five-year period, what factor will you use to determine what to deposit now?

  Determining the amount of deposit

Bill and Cathy want to make fifteen equal annual payments into an account, starting today, so there will be enough money to purchase the villa in fifteen years. If the account earns 10% per year, what is the amount of each deposit?

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