Return on abc company common stock

Assignment Help Basic Statistics
Reference no: EM132073431

ABC Company's common stock has a beta of 1.43. If the risk-free rate is 3.39 percent, and the market return is 8.74 percent, calculate the required return on ABC company common stock.

Reference no: EM132073431

Questions Cloud

What is the annual cash flow each year : If cash flows are evenly distributed, what is the annual cash flow each year? (Assume depreciation is a negligible amount.)
What is the average monthly return : The past five monthly returns for K and Company are 3.75 percent, 3.92 percent, -1.45 percent, -.95 percent, and 8.50 percent.
Compute the return the firm should : Compute the return the firm should earn given its level of risk and determine whether the manager is saying the firm is under-valued or over-valued.
Calculate the standard deviations of the returns : Stock B produced the following returns in recent years:
Return on abc company common stock : If the risk-free rate is 3.39 percent, and the market return is 8.74 percent, calculate the required return on ABC company common stock.
What can be done to compensate for the uncertainty : After three years, the cart is expected to be worthless because the expected life of the refrigeration unit is only three years. What's the payback period?
Developing countries are supporting for the globalization : Most people who are living in these developing countries are supporting for the globalization, but also some people have worries about globalization.
What is the supplemental tax bill : What is the supplemental tax bill and how does it effect buyers who just purchased a home that was last sold 25 years ago
Evaluate project and identify it is worth buying : The discount rate used to evaluate such a business is 14.5%. The offer to purchase the business is $500,000. Evaluate this project and identify if it is worth

Reviews

Write a Review

Basic Statistics Questions & Answers

  Suppose test scores for a test are uniformly distributed

suppose test scores for a test are uniformly distributed between 51 and 95. let xtest scores. what is the probability a

  Compute the conditional probability

Given that each of those two balls is red, compute the conditional probability that 5 red blls were placed in the bowl at random.

  Hypothesis testing for soft-drink manufacturer

A soft-drink manufacturer claims that its 12-ounce cans do not contain, on average, more than 30 calories. A random sample of 16 cans of this soft drink, which were checked for calories

  Percentage of republican voters

What is the probability that the survey will show a greater percentage of Republican voters in the second state than in the first state?

  Consumer with exceptional grace under pressure

Can we train our team to meet the needs of our consumer with exceptional grace under pressure?

  How many heads in a row would you need to see

You now begin to flip the coin in order to learn more. Obviously, if you ever see a tail, you know immediately that the coin is fair. As a function of F, how many heads in a row would you need to see before becoming convinced that there is a bette..

  Randomly selected households own a dog

Use the following information to answer the question. Suppose that a recent poll of American households about pet ownership found that for households with one pet, 39% owned a dog, 33% owned a cat, and 7% owned a bird.

  Probability that one inspector will find defective widget

Each inspector makes his or her inspection at a different time. What is the probability that at least one inspector will find a defective widget?

  Will x9 necessarily be next

During a stepwise regression analysis, x4 is the first independent variable brought into the equation. Will x9 necessarily be next? If not, why not?

  Why is the normality assumption not a problem

In 1992, the FAA conducted 86,991 pre-employment drug tests on job applicants who were to be engaged in safety and security-related jobs, and found that 1,143 were positive. (a) Construct a 95 percent confidence interval for the population proportion..

  Experience with the eoq policy

A manager of an inventory system believes that inventory models are important decision-making aids. The manager has experience with the EOQ policy

  Drawing a black card club or spade from a standard deck of

drawing a black card club or spade from a standard deck of

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