Stock has correlation with the market

Assignment Help Financial Management
Reference no: EM13895423

A stock has a correlation with the market of 0.64. The standard deviation of the market is 30%, and the standard deviation of the stock is 38%. What is the stock's beta?

Reference no: EM13895423

Questions Cloud

Two different conveyor belt systems : BOE Manufacturing is trying to decide between two different conveyor belt systems. System A costs $272,000, has a four-year life, and requires $83,000 in pretax annual operating costs. System B costs $384,000, has a six-year life, and requires $77,00..
Evaluating two different silicon wafer milling machines : You are evaluating two different silicon wafer milling machines. The Techron I costs $237,000, has a three-year life, and has pretax operating costs of $62,000 per year If your tax rate is 34 percent and your discount rate is 8 percent, compute the E..
What role does discrimination play in perpetuating : What role does discrimination play in perpetuating the assessment of AOD problems among diverse populations
Economic life using the straight-line method : Howell Petroleum is considering a new project that complements its existing business. The machine required for the project costs $3.85 million. The marketing department predicts that sales related to the project will be $2.55 million per year for the..
Stock has correlation with the market : A stock has a correlation with the market of 0.64. The standard deviation of the market is 30%, and the standard deviation of the stock is 38%. What is the stock's beta?
Calculate the redemption value : A 700 par value 5 year 10% bond with semiannual coupons is purchased for 670.60. The present value of the redemption is 372.05. Calculate the redemption value.
What is the current bond price-pv method : Sqeekers Co. issued 14-year bonds a year ago at a coupon rate of 7.4 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 5.7 percent, what is the current bond price? I need to also figure out how t..
Find the loan balance immediately after the sixth payment : On May 12, Jameel takes out a personal loan at an annual effective interest rate of 6%. The loan is to be repaid by payments on each of the next ten May 12s, the first six being for $822 and the final four being for $1516. Find the loan balance immed..
What is the present value of its growth opportunities : Tri-coat Paints has a current market value of $43 per share with earnings of $2.14. What is the present value of its growth opportunities (PVGO) if the required return is 5%?

Reviews

Write a Review

Financial Management Questions & Answers

  Explain how a obhc differs from a mbhc

Explain how a OBHC differs from a MBHC. How does each of these differ from a financial services holding company?

  How much would GDP increase

Suppose Apple produces 10,000 MacBooks in December of 2013 with an estimated market value of 2,000 each. None of those are sold until sometime in the spring of 2014. How much would GDP increase in 2014?

  Maximum price you should be willing to pay for the bond

Assume that you wish to purchase a bond with a 30-year maturity, an annual coupon rate of 10 percent, a face value of $1,000, and semiannual interest payments. If you require a 9 percent nominal yield to maturity on this investment, what is the maxim..

  Budgets in managerial accounting

Using the information, prepare a budget for May. Consider that production wil increase to 30,000 jars of salsa, reflecting an anticipated sales increase related to a new marketing campaign.

  Calculate present value of the retirement benefit

Stan elects to receive his retirement benefit over 10 years at the rate of 2000 per month beginning one month from now. The monthly benefit increases by 5% each year. At an annual nominal interest rate of 6% compounded monthly, calculate the present ..

  Bond electrical utility is offering a security known as

electrical utility is offering a security known as zero coupon bond for sale. the terms of the security are investors

  Convert infinite series of asset purchases into perpetuity

The best approach to convert an infinite series of asset purchases into perpetuity is known as

  Relativity greater total market capitalizations

Also, a _______-weighted index is "distorted" in that it is influenced equally by both large and small firms whereas a ______-weighted index is "distorted" in that it is influenced more by firms with relativity greater total market capitalizations.

  Depreciation expense and interest expense

Hamble, Inc., has sales of $19,070, costs of $10,460, depreciation expense of $2,530, and interest expense of $1,600. If the tax rate is 35 percent, what is the operating cash flow, or OCF?

  What were the total cash expenses-what was clinics cash flow

Great Lakes Clinic reported net income for 2014 of $3.6 million on total revenues of $55 million. Depreciation expenses totaled $3 million. What were the total expenses? What were the total cash expenses? What was the clinic's cash flow?

  What was its charge for depreciation and amortization

Talbot Enterprises recently reported an EBITDA of $9.0 million and net income of $2.7 million. It had $3.6 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? Enter your answer in do..

  Example of when the underlying circumstances are favorable

Consider each of the following situations independently of each other. For each of the situations, provide one example of when the underlying circumstances may be such that the observed trend is unfavorable, and one example of when the underlying cir..

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