Rate of return on the stock

Assignment Help Finance Basics
Reference no: EM131097939

Investors expect the market rate of return this year to be 10%. A stock with a beta of 1.8 has an expected rate of return of 16%. If the market return this year turns out to be 6%, what is the rate of return on the stock?

Reference no: EM131097939

Questions Cloud

When long-run average costs are rising : When long-run average costs are rising, short-run and long-run marginal costs: (a) Intersect above average costs; (b) Intersect below average costs; (c) Intersect at the level of average costs; (d) Never intersect.
Find and present a specific example of impact : Find and present a specific example of the impact of each type of investment risk. In each case, how did the type of risk affect investment performance?
Cigarette consumption and consumer spending on cigarettes : According to studies undertaken by the US Department of Agriculture, the price elasticity of demand for cigarettes is between – 0.3 and – 0.4 and the income elasticity is about + 0.5. Suppose Congress, influenced by studies linking cigarette smoking ..
Explain significance of things within field of psychology : Develop well-formed research questions or a relevant intervention and explain the significance of these things within the field of psychology - Summarize the literature and identify the main argument in support of the research questions or interven..
Rate of return on the stock : Investors expect the market rate of return this year to be 10%. A stock with a beta of 1.8 has an expected rate of return of 16%. If the market return this year turns out to be 6%, what is the rate of return on the stock?
Decide whether you should pursue a multi-domestic : Decide whether you should pursue a multi-domestic or a global strategy for a beer making company in the United States. Explain which strategy will be appropriate to increase the sales of your beer in foreign markets?
Identify one ethical dilemma and explain how a deontological : Identify one ethical dilemma and explain how a deontological ethicist, consequentiality, and a virtue ethics philosopher would deal with this dilemma.
Common-size statement value of inventory : A firm has sales of $1,230, net income of $181, net fixed assets of $548, and current assets of $272. The firm has $90 in inventory. What is the common-size statement value of inventory?
Most significant costs for for-profit colleges : Identify three of the most significant costs for for-profit colleges and discuss (in the short run) how the magnitude of each cost type affects (i) profits, (ii) equilibrium enrollment and (iii) for-profit colleges’ decisions about whether to enter o..

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!

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