Standard deviation of annual returns

Assignment Help Financial Management

Reference no: EM131334274

The correlation between RiskCorp's returns and market returns is 52 %. RiskCorp's volatility (standard deviation of annual returns) is 72% and market volatility is 23?%. If the risk-free rate is 3% and the expected market risk premium is 10%, what is? RiskCorp's expected return?

The stock's expected return is___% (provide the answer in % and round to two decimals)

Reference no: EM131334274

Questions Cloud

Qualifies as an agent for purposes of the act : Exactly who qualifies as an agent for purposes of the act? Must a person in some fashion be responsible for the funds granted to the state entity?

Depreciated straight-line over its three-year tax life : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.3 million. The fixed asset will be depreciated straight-line over its three-year tax life, and the fixed asset will have a market..

Defining organizational culture : Defining organizational culture, Schein states that a group's culture is influenced by the group's accumulated learning. Do you agree or disagree with Schein's statement and why?

Quantity of downloads would maximise profit : a. Find total revenue for quantity equal to 10,000, 20,000 and so on. What is the marginal revenue for each 10,000 increase in the quantity sold? b. What quantity of downloads would maximise profit? What would the price and profit be?

Standard deviation of annual returns : The correlation between RiskCorp's returns and market returns is 52%. RiskCorp's volatility? (standard deviation of annual returns) is 72% and market volatility is 23%. If the risk-free rate is 3% and the expected market risk premium is 10%, what is ..

Explain current market forces that drive this interest rate : Grant Corporation's stock is selling for $40 in the market. The company's beta is 0.8, the market risk premium is 6 percent, and the risk-free rate is 9 percent. The dividend just paid was $2, and dividends are expected to grow at a constant rate. Wh..

What is the optimum orientation for the fibers : What is the required wall thickness and material type that yields the minimum thickness?

Identify an organization to diagnose : Compare and contrast two different organizational assessment tools that could be used to gather data for your organization. Identify their pros and cons

Compute the average cost per mile of operating that truck : Assume that MOS has a delivery truck that is driven for 60,000 miles in one year. Compute the average cost per mile of owning and operating that truck.

User Account

All Pages