Semitool actual excess return

Assignment Help Finance Basics
Reference no: EM133071661

Semitool Corp. has an expected excess return of 10% for next year. However, for every unexpected 1% change in the market, Semitool's return responds by a factor of 1.3. Suppose it turns out that the economy and the stock market do better than expected by 8% and Semitool's products experience more rapid growth than anticipated, pushing up the stock price by another 5%. Based on this information, what was Semitool's actual excess return?

Reference no: EM133071661

Questions Cloud

Describe circumstances that led to change : Describe the circumstances that led to the change. Describe and evaluate actions taken by organizational leaders to prepare people for/implement the change.
Describe the internal control system : Describe the internal control system. What functions do an organization's board of directors perform in promoting a strong control environment
Expected return on investment : Your investment has a 39% chance of earning a 19% rate of return, a 25% chance of earning a 29% rate of return, and a 36% chance of losing 5%.
At what amount should cleveland record the purchase : The list price was P4,000,000, a freight charge of P100,000, and payment terms of net 30 days. At what amount should Cleveland record the purchase
Semitool actual excess return : Semitool Corp. has an expected excess return of 10% for next year. However, for every unexpected 1% change in the market, Semitool's return responds by a factor
Identify a successful business venture : [Business Financing] Identify a successful business venture that has been in business for at least three years.
What a digital government looks like - summarise : What a digital government looks like by Anna Piperal - Summarise your findings, consolidating and drawing attention to the main points of the report
Operational planning and policy : Identifies the company's products and/or services. Specifics the buyer needs that the company seeks to satisfy and the customer groups or markets that it serves
Calculate the profit or loss : Calculate the Profit or Loss from the following information. Be careful when calculating this - Sales 425,000 and Interest Income 6800

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the penalty deep will pay

The county adds a penalty of 7.7?% simple interest on unpaid tax. Find the penalty Deep will pay.

  What are the net present costs for tractors

A community farm needs to purchase a new tractor for the upcoming year. The manager is trying to make a decision between three different tractor options.

  What is an undifferentiated strategy

What is an undifferentiated strategy? Under what conditions is it most useful? Describe a present market situation in which a company?

  Do you expect abc to buy the new computer system

The ABC Corporation is contemplating purchasing a new computer system that would yield a before-tax return of 30 percent. The system would depreciate at a rate.

  Cranberry inc has sales of 224700 cost of goods sold of

cranberry inc. has sales of 224700 cost of goods sold of 102500 net profit of 9800 fixed assets of 84200 and current

  Discuss the lower bound for option prices

Discuss the lower bound for option prices and the put-call parity with and without dividend yields; and explain why.

  Stock r has a beta of 23 stock s has a beta of 030 the

stock r has a beta of 2.3 stock s has a beta of 0.30 the expected rate of return on an average stock is 9 and the

  What is the market value of l

The other way around: you invest $60 into stocks of L. By combining a stock purchase of U and deposit/loan, provide a optional strategy that provides the same profits.

  Calculate operating income

Calculate operating income using the following information:

  Confidence interval for the population mean

The population standard deviation was 1.7 years. Using the 0.95 degree of confidence, what is the confidence interval for the population mean?

  Managing finance in health and social care

"Health Service Managers without financial skills will face a more difficult employment environment." What comes to your mind when you think of the financial responsibilities in your future profession? How are they different from an accountant's pr..

  Would its expected return double

If a company's beta were to double, would its expected return double?

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