Risk-free rate-required rate of return

Assignment Help Financial Management

Reference no: EM131012858

Required Rate of Return Assume that the risk-free rate is 5% and that the market risk premium is 3%. What is the required rate of return on a stock with a beta of 0.9? Round your answer to two decimal places. % What is the required rate of return on a stock with a beta of 1.3? Round your answer to two decimal places. % What is the required return on the market? Round your answer to two decimal places.

Reference no: EM131012858

Questions Cloud

About the annual percentage rate : Sean purchased 100 shares of Toyota stock at a price of $151.68 three months ago. He sold all stocks today for $155.15. During the period in question, the stock paid dividends of $5.18 per share. What is Sean's annualized holding period return (annua..

Coefficient of restitution : where the parameter c, called the coefficient of restitution, represents the "bounciness"? of the ball in the collision. Compute du/dw and explain its meaning. (simplify du/dw as much as possible).

The default-free yield curve on zero-coupon : The default-free yield curve on zero-coupon U.S. Government Treasury securities is given below. Maturity (in years) Rate 1 .01 2 .015 3 .02 4 .025 5 .0275 6 .03 Currently you can buy a corporate bond sold by a company that has some chance of defaulti..

Compare and contrast the similarities : Compare and contrast the similarities and differences between ionic and covalent bonding

Risk-free rate-required rate of return : Required Rate of Return Assume that the risk-free rate is 5% and that the market risk premium is 3%. What is the required rate of return on a stock with a beta of 0.9? Round your answer to two decimal places. % What is the required rate of return on ..

Stock valuation methods zero-growth-constant growth : The stock valuation methods zero-growth, constant growth, variable growth, free cash flow, P/E multiple models, and book value method, to find out which is most accurate in regard to value to firms we would have to analyze each one individually.

Which disease can affect the human nervous system : Which of the following events would result in decreased blood glucose levels?

Calculate the effect from the sale of the exising asset : Fine Press is considering replacing the existing press with a more efficient press. The new press costs $55,000 and requires $5000 in installation costs. The old press was purchased 2 years ago for an installed cost of $35,000 and can be sold for $20..

Price-earnings ratio remains at its current level : Fontaine Inc. recently reported net income of $7 million. It has 770,000 shares of common stock, which currently trades at $25 a share. Fontaine continues to expand and anticipates that 1 year from now, its net income will be $10.15 million. Assuming..

User Account

All Pages