Find the market risk premium

Assignment Help Financial Management

Reference no: EM132014512

1. Suppose an investor made this statement: "I will be perfectly happy with my investments if I can just earn a three percent real rate of return each year." Based on this statement, what can you determine about this investor?

2. QQQ stock has a 15% required return and a beta of 1.6. The risk-free rate is 4%. Find the market risk premium. Round intermediate steps and your final answer to four decimals and enter your answer in decimal format (EX: .XXXX).

3. ABC Inc has an expected return of 14%. The S&P 500 return and the risk-free rate are 12% and 3%, respectively. Find ABC's beta. Round intermediate steps and your final answer to four decimals.

Reference no: EM132014512

Questions Cloud

What is the new required return on equity : KarTeX Inc, was recently founded to manufacture a new efficient fuel injection system. What is the new required return on equity?

Cash flows comprise of changes in operating cash flows : The project’s incremental cash flows comprise of changes in operating cash flows, which one:

Percentage change in the value of bond mentioned : What will be the percentage change in the value of the bond mentioned in the previous question if the yield to maturity decreases by 60 basis points?

New estimate of the maximum share price for purchase : What is your new estimate of the maximum share price for the purchase?

Find the market risk premium : QQQ stock has a 15% required return and a beta of 1.6. The risk-free rate is 4%. Find the market risk premium.

Equal dollar amount in three stocks to create portfolio : You invested an equal dollar amount in three stocks (A,B, and C) to create a portfolio. The expected returns of stocks A-C are 10%, 12%, and 4%, respectively. T

Bill plans to open self-serve grooming center in storefront : Bill plans to open a self-serve grooming center in a storefront. What is the project's PI? Should it be accepted?

Team will use live audience in previewing : This team will use a live audience in previewing the TV pilots to determine whether the viewed TV show will be successful.

The argentine inflation rate is expected : Then according to the IFE, the Argentine inflation rate is expected to be about ____ the U.S. inflation rate, and the Argentine peso is expected to ____.

User Account

All Pages