Standard deviation of returns for the market portfolio

Assignment Help Accounting Basics
Reference no: EM13919092

Use the security market line to determine the required rate of return for the following firm's stock. The firm has a beta of 1.25, the required return in the market place is 10.50%, the standard deviation of returns for the market portfolio is 25.00% and the standard deviation of returns for your firm is also 25.00%.

Reference no: EM13919092

Questions Cloud

Elements of reasoning that were outlined : Using the 8 elements of reasoning that were outlined in week 2 (Purpose, problem, information, concepts, assumptions, inferences, points of view, implications or consequences) choose a news article and break it down according to those elements.
Describing how you feel about this change : Select some change that has occurred in your environment recently like a new professor, relationship change, living change, employment lay off. Write a one page paper describing how you feel about this change, whether it is a challenge or a threat..
Assignment on retrospective analysis of personality : In this assignment, begin by taking a retrospective look at your life history, to discuss which aspects of your personality have remained consistent and which aspects of your personality have changed over time. Then, analyze the roles of nature an..
Do you agree that these are only two strategies available : There are only two generic strategies available to a firm: differentiation or cost leadership. Both strategies can be applied either into a focused market or a broad market. Do you agree that these are the only two strategies available? Are they m..
Standard deviation of returns for the market portfolio : the standard deviation of returns for the market portfolio is 25.00% and the standard deviation of returns for your firm is also 25.00%.
Castle family restaurant business plan : Castle's Family Restaurant has eight restaurants in the Northern California area with approximately 300-340 employees. Most of the employees are part-time with approximately 40% of them full-time.
Remained active or disengaged in their environment : Select someone in your family who has reached late adulthood. Write a one page, double spaced response to the following questions:
Explain the maturation of the social networking industry : Discuss a new strategic plan/approach to help an organization in the future with reference to the maturation of the industry. Explain how a new strategy could help a company with their competitive advantage, cost advantage, and differentiation adva..
Organizational and personal decisions : What role do external social pressures have in influencing organizational ethics? How might these issues be relevant to organizational and personal decisions?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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