Stock a has a beta of 5 and investors expect it to return 5

Assignment Help Accounting Basics
Reference no: EM13595522

Stock A has a beta of .5, and investors expect it to return 5%. Stock B has a beta of 1.5, and investors expect it to return 9%. Use the CAPM to find the expected rate of return and the market risk premium on the market.

  1. Expected rate of return ?%
  2. Market risk premium ?%

Reference no: EM13595522

Questions Cloud

Calculate the titer of the edta solution in terms of mg of : a sample of pure caco3 weighing 0.2500g is dissolved in hydrochloric acid and the solution diluted to 250.0ml in a
For the reaction given below the frequency factor a is 87 x : for the reaction given below the frequency factor a is 8.7 x 1012 s-1 and the activation energy is 63 kjmol.nog o3g
Fortune inc is preparing its master budget for the first : fortune inc. is preparing its master budget for the first quarter. the company sells a single product at a price of 25
The trucks will have a useful life of seven years to raise : the diamond freight company has been offered a seven-year contract to haul munitions for the government. because this
Stock a has a beta of 5 and investors expect it to return 5 : stock a has a beta of .5 and investors expect it to return 5. stock b has a beta of 1.5 and investors expect it to
A person of weight 80 kg jumped off a platform of height 1 : a person of weight 80 kg jumped off a platform of height 1 m and safely landed on his feet. what is the magnitude of
A certain applications requires a mterial that is : a certain applications requires a mterial that is lightweight an electrical insulator and has some flexibility.a which
Indicate if each transaction and events is a source of : indicate if each transaction and events is a source of casha use of cash andor an adjustment leading to a source or use
At company purchased a tractor at a cost of 60000 the : at company purchased a tractor at a cost of 60000. the tractor has an estimated salvage value of 10000 and an estimated

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