The market risk premium-what is its beta

Assignment Help Financial Management

Reference no: EM131051180

The market risk premium is 6.88 percent, and the risk-free rate is 4.43percent. If the expected return on a bond is 8.38 percent, what is its beta? (Round answer to 2 decimal places, e.g. 15.25.)

Beta (βbond)

Please include steps

Reference no: EM131051180

Questions Cloud

What is your rate of return on francesca industries : Suppose you buy a round lot of Francesca Industries stock on 55 percent margin when the stock is selling at $20 a share. The broker charges a 10 percent annual interest rate, and commissions are 3 percent of the stock value on the purchase and sale. ..

Identify key statistics of the food service segmentation : Discuss what food stores are involved in this process and what social forces or trends you believe are behind the local, sustainable, and organic movement.

Decides to issue new common stock-flotation costs : Sentry Manufacturing paid a dividend yesterday of$5 per share (DO = $4). The dividend is expected to grow at a constant rate of 8% per year. The price of Sentry Manufacturing's stock today is $29 per share. Sentry Manufacturing’s marginal tax rate is..

What is the planned value of the project : SIT374 / SIT764: Project Management Assignment. What is the planned value of the project? What is the rate of performance (RP) for each task? Using the RPs obtained, calculate the Earned Value (EV), Schedule Variance (SV), Cost Performance Index (C..

The market risk premium-what is its beta : The market risk premium is 6.88 percent, and the risk-free rate is 4.43percent. If the expected return on a bond is 8.38 percent, what is its beta?

The systematic risk associated with the returns : In February 2013 the risk-free rate was 4.37 percent, the market risk premium was 7 percent, and the beta for Dell stock was 1.56. What is the expected return that was consistent with the systematic risk associated with the returns on Dell stock? (

Under ifrs-cash and cash equivalents : Under IFRS, cash and cash equivalents are reported: (a) The same as GAAP.

What is the market risk premium : If the expected return on the market is 7 percent and the risk-free rate is 4 percent, What is the expected return for a stock with a beta equal to 0.65? What is the market risk premium?

Total revenue and net income applicable to common shares : When reviewing an income statement for a company for 3 consecutive years, how do you compute annual percentage change between those three years for total revenue and net income applicable to common shares?

User Account

All Pages