Find risk-free rate of return Using CAPM

Assignment Help Financial Accounting
Reference no: EM132664311

Problem 1: Average rate of return from market index is 15.94 per cent. Beta coefficient of GTX stock is 1.53 and its expected return is 21.54%. If the market risk premium is 7.59%, find risk-free rate of return. Use CAPM

Reference no: EM132664311

Questions Cloud

What monthly payment will receive from an ordinary annuity : You have saved $1.5 million in your RRSP by the time, What monthly payment will receive from an ordinary annuity if your life expectancy is to age 95?
What are roles and responsibilities of forensic psychology : Post by Day 3 a 2- to 4-paragraph response to the following: Based on your reading, identify one or more issues that you have identified within the correctional
Describe the architecture of the network : Describes the architecture of the network: Subnetting (VLAN) architecture, geographic spread of the network, main interconnecting devices, location of key
Explain the process of IPO for the company : Rotary Appliances is planning to go public. As an underwriter briefly explain the process of IPO for this company by using a hypothetical scenario.
Find risk-free rate of return Using CAPM : Beta coefficient of GTX stock is 1.53 and its expected return is 21.54%. If the market risk premium is 7.59%, find risk-free rate of return. Use CAPM
Find the expected return from relevant industry of qtx stock : Find the expected return from the relevant industry of QTX stock. Analysts suggest 1.44 beta value for QTX; whereas relevant industry average beta value is 1.17
Determine net income for crane diesel : Determine net income, assuming 1,700 haircuts are given in a month. Crane Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate
Intelligence and law enforcement operations : Intelligence and law enforcement operations can sometimes conflict. Assume that you are an intelligence analyst in the Federal Bureau of Investigation.
Find what is the standard deviation of the portfolio : If you invest 58.33% of your money in security-X and the remaining in security-Y, what is the standard deviation of your portfolio

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find out the amount that rim invested in capital assets

Find out the amount that RIM invested in capital assets for that year. Assume a seven-year life and a 12% internal rate of return. What is the amount of cash flows that RIM must earn on these new projects?

  What is consolidated net income-without consideration

Campbell Inc. owned all of Gordon Corp. For 2011, Campbell reported net income (without consideration of its investment in Gordon) of $280,000 while the subsidiary reported $112,000. The subsidiary had bonds payable outstanding on January 1, 2011, wi..

  What will be consequences if an accountant wrongly treat

What will be consequences if an accountant wrongly treats capital expenditures as revenue expenditure? Support you answer with a rationale.

  William company acquired

William Company acquired 30 percent of eGate Company's common stock, at underlying book value of $100,000. eGate has 100,000 shares of $2 par value, 5 percent cumulative preferred stock outstanding. No dividends are in arrears.

  Determine how explore the valuation of common stock

Determine how Explore the Valuation of Common Stock. How to Determine how diversification is important in the formation of the CAPM.

  Calculate the projected npv and the payback time

Use a discount rate of 9% for the projected cash in-flows. Assume a five-year lifespan. Calculate the projected NPV, the payback time

  What percentage of salary must save each year

Mutual fund can achieve a 12 percent annual rate of return and you want to buy the car in 9 years on the day you turn 30, how much must you invest today?

  Short-term investment in available-for-sale securities costs

If a short-term investment in available-for-sale securities costs $10,000 and is sold for $12,000, how should the difference between these two amounts be recorded?

  When direct costing is used cost of goods sold reflects

When direct costing is used, cost of goods sold reflects

  Prepare cost of goods sold section for year ending

The trial balance of A. Wiencek Company at the end of its fiscal year, August 31, 2017, includes these accounts: Inventory $19,500; Purchases $151,500; Sales Revenue $196,000; Freight-In $4,300; Prepare a cost of goods sold section for the year endin..

  Note obligates brent to pay the bank the amount of the loan

Brent gets a loan from San Fransisco Bank. Brent signs a standard form note prepared by the bank. The note obligates Brent to pay the bank the amount of the loan, plus interest.

  Find what year does the pool reach payback period

Find What year does the pool reach its payback period? The City in which you live is evaluating a project to build and manage a public pool

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