Stocks expected rate of return

Assignment Help Finance Basics
Reference no: EM132661759

Consider a stock that has a correlation with the market of 0.33 and a standard d deviation of 22%. According to the CAPM, if market has an expected return of 10% and a standard deviation of 32%, and the risk-free rate is 3%, what will be the stocks expected rate of return?

Reference no: EM132661759

Questions Cloud

Determining literature on group work and group therapy : Psychiatric mental health nursing practice is one of the newest disciplines to be licensed to provide psychotherapy As such, the majority of psychotherapy.
Calculate the cost of preference capital : Calculate the cost of preference capital (kp) for a non-redeemable preference share which has the following:
Determine various roles of governance within organizations : Determine various roles of governance within organizations and how they should interact within a team setting (e.g., board meetings, committee meetings.
What the financialization of the US economy means : What the "financialization" of the US economy means. Then, cite at least one piece of evidence that it has indeed happened or is a valid notion
Stocks expected rate of return : According to the CAPM, if market has an expected return of 10% and a standard deviation of 32%, and the risk-free rate is 3%, what will be the stocks expected r
Describe the US economy on the spectrum of capitalism : Define and explain clearly the difference between negative and positive freedom. The text discusses ways in which capitalism has a contradictory
What exclusion criteria did the authors mention : Psychiatric mental health nursing practice is one of the newest disciplines to be licensed to provide psychotherapy As such, the majority of psychotherapy.
Discuss the good and bad of persuasion : Discuss how this relates to advertisers who try to get you to like a product by associating it with someone or something else that you already like.
How would you describe the structure of the family : Annie was widowed when her son was 4 years old. She later remarried a man with a child 2 years younger than her own. The children now being 17 and 19 years old.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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