Find the reward-to-risk ratio for the security-dtx

Assignment Help Financial Accounting
Reference no: EM132902903

Problem 1: The realised return from security-DTX is 15.05%. The expected market return is 13.24%. If the risk-free rate is 5.14% and the beta coefficient for the security-DTX is 2.07. Find the reward-to-risk ratio for the security-DTX.

Reference no: EM132902903

Questions Cloud

Difference between a grant proposal and a typical sales : What is the primary difference between a grant proposal and a typical sales proposal?
Find the market risk premium : The expected rate of return from this security is 16.14% as per CAPM. If the government bond is yielding 4.32%, find the market risk premium.
What would be the principal on the first payment : What would be the principal and interest payment on the first payment? What would be the principal and interest payment on the twelfth payment?
Create simple household budget : Create a simple household budget, including all income and expenses.
Find the reward-to-risk ratio for the security-dtx : If the risk-free rate is 5.14% and the beta coefficient for the security-DTX is 2.07. Find the reward-to-risk ratio for the security-DTX.
Find the beta of the portfolio : An investor invested a total of $36,392. If beta coefficients of securities D, F, and H are 1.3, 2.09 and 0.62 respectively, find the beta of the portfolio.
Feasibility report for a tablet shell manufacturing : Feasibility report for a Tablet shell manufacturing - Plot of the manufacturing cost per component versus number of components for each of the three materials
Find the cost of the DTX preference share : 12.9% Preference share of the DTX-Ltd with an issue price of $6 is currently selling at $7.1 in the market. Find the cost of this DTX preference share.
Find the cost of OTX ordinary share : The beta coefficient for OTX Ltd is 1.77. Use only relevant information and applicable method to find the cost of OTX ordinary share.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine which is a nonrefundable credit

Preparer explains nonrefundable credits can reduce his tax liability to zero but can never add to his refund. Which of the following is a nonrefundable credit?

  Explain the tax benefits of debt financing

Explain the tax benefits of debt financing. Apply the calculated AT-WACC to explain why this is or is not a viable investment for you as the Angel Investor

  Correction of wrongly stated balance sheet

Correction of wrongly stated balance sheet and Correct the following balance sheet

  Calculate the loss on impairment

Determine if goodwill is impaired. If not, explain your reasoning. If so, calculate the loss on impairment.

  Find What total amount of dividends must Willow Run declare

Dividend on each share of outstanding common stock in the current year. To accomplish this, what total amount of dividends must Willow Run declare?

  Prepare monthly cash budget for the next three months

The controller of Dash Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: March April May Sales $104,000 $131,000 $164,000 Manufacturing costs 44,000 56,000 59..

  What kind of loan would you offer to a poultry farmer

What kind of loan would you offer to a poultry farmer who wants to build his poultry housing for broilers? What would be the appropriate term or maturity

  Compute the purchase price per pound for direct materials

Compute for SMP the following: Purchase price per pound for direct materials. Direct materials purchase-price variance.

  Difference between adjusting entries and correcting entries

Required- Journalize the adjusting entries required on March 31. What is the difference between adjusting entries and correcting entries

  How do calculate the cost of each capital component

Calculate the cost of each capital component-in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs)

  Discuss the importance of management representation to audit

Discuss the importance of management representation to the audit. Explain briefly FOUR (4) essential elements of the audit report

  How do prepare the necessary journal entries for larkspur

Prepare the necessary journal entries for Larkspur. July 12 Sold $86,000 of solar panels to Blue Spruce Corp. with terms of 3/10, n/60.

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