User Account

All Pages

Percent and the market risk premium

Assignment Help Finance Basics
Reference no: EM131521703

The risk-free rate, kRF, is 2.7 percent and the market risk premium, (kM - kRF), is 5 percent. Assume that required returns are based on the CAPM. Your $1 million portfolio consists of $ 307 ,000 invested in a stock that has a beta of 0.5 and the remainder invested in a stock that has a beta of 1.2 . What is the required return on this portfolio? Enter your answer to the nearest .1%. Do not use the % sign in your answer, thus 12.1% is 12. 1 rather than 12.1 or .121.

Reference no: EM131521703

Questions Cloud

Variables would suggest otherwise : It looks like the US stock market may or may not be a bubble. What economic variables would suggest that this asset class is a bubble and what variables.
Analyze and develop job requirements and task statements : Identify, analyze, and develop job requirements and task statements that you will include in formalized job descriptions
What would be the total return of the bond in dollars : What is the inflation premium? What is the fair interest rate on the corporation's 30-year bonds?
Provide suggestions regarding steps that company can take : Each individual paper should summarize the group discussions and provide suggestions regarding the steps that the company can take.
Percent and the market risk premium : The risk-free rate, kRF, is 2.7 percent and the market risk premium, (kM - kRF), is 5 percent. Assume that required returns are based on the CAPM.
Estimate of gina cost of equity : On the basis of the results of Parts a and b, what would be your estimate of Gina's cost of equity?
Record issuance of the mortgage installment note : On January 1, 2012, Stoops Entertainment purchases a building for $500,000, paying $100,000 down and borrowing the remaining $400,000, signing a 7%, 15-year.
The mesopotamian or ovids account of creation : Focus on two or three things in the Mesopotamian and/or Ovid's account of creation that differ from Genesis.
What does it mean when an algorithm is efficient versus : Algorithms can be described as either efficient or inefficient. In your opinion, what does it mean when an algorithm is efficient versus when it is inefficient?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd