Variance in expected rate of return of hayek corporation

Assignment Help Financial Management
Reference no: EM132005663

The rate of return on the U.S. government treasury bill is 0.01 and the expected rate of return on the Wilshire 5000 is 0.06 . What is the required rate of return for a stock with a Beta 1.16?

Menger Corporation has a 0.4 probability of a return of 0.00, a 0.4 probability of a rate of return of 0.06, and the remaining probability of a 0.40 rate of return. What is the expected rate of return of Menger Corporation?

Hayek Corporation has a 0.4 probability of a return of -0.15, a 0.3 probability of a rate of return of 0.08, and the remaining probability of a 0.90 rate of return. What is the variance in the expected rate of return of Hayek Corporation?

Reference no: EM132005663

Questions Cloud

What is the internal rate of return : What is the internal rate of return of the following set of cash flows?
Discuss the forward market for foreign exchange : Discuss the forward market for foreign exchange. Include forward rates, cross-exchange rates, forward premium and long and short forward speculative positions.
Define the exchange rate : Define the exchange rate. Compare fixed and floating rates.
Advantages to member countries of the european union : What are the current advantages to member countries of the European Union? What are the disadvantages?
Variance in expected rate of return of hayek corporation : What is the variance in the expected rate of return of Hayek Corporation?
Financial institutions received support from federal reserve : In addition support from the U.S. government through TARP funds, financial institutions received support from the Federal Reserve.
Determine the capitalized cost for the renovation : Determine the capitalized cost for the renovation.
Will wants to retire a millionaire : Will wants to retire a millionaire. How much must he save monthly to have $1,000,000 when he retires in 47 years if he earns 8% annually?
What is the company leveraged beta : Consider a company subject to a corporate tax rate of 0.2. If the company has a debt ratio of 0.4. what is the company's leveraged beta??

Reviews

Write a Review

Financial Management Questions & Answers

  What was the price of this bond when it was? issued

What was the price of this bond when it was? issued?

  All net assets at the beginning of the year are unrestricted

Below is a list of account balances for Currie Hospital as of December 31, 2013. Prepare a balance sheet as of December 31, 2013, in proper form. (Hint: You will need to compute the net assets account. Assume that all net assets at the beginning of t..

  Calculate the nal with the security deposit

Suppose Lambert requires Wildcat to pay a $700,000 security deposit at the inception of the lease. Calculate the NAL with the security deposit.

  There are three stocks

There are three stocks. Stock A has a beta of βA = 0.6 and an expected return of 8.8%. Stock B has a beta of βB = 1.2 and an expected return of 13.6%. If the CAPM holds in this market, what should be stock C’s expected return if its beta is βC = 1.05..

  Calculate the npv of the decision to grant credit

Calculate the NPV of the decision to grant credit.

  Determine the equivalent uniform annual worth

A company plans to invest $20,000 dollars are new equipment to reduce operating costs. It is estimated that the savings will be $7,000 per year for the 6 year life of the equipment. Determine the equivalent uniform annual worth (EUAW) of the equipmen..

  Research to develop computer game-what will be net cash flow

Your company has spent $300,000 on research to develop a new computer game. The firm is planning to spend $50,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $6,..

  How each feature would affect the coupon rate of bond issue

Ed is uncertain about the costs and benefits of some features, so he isn't sure how each feature would affect the coupon rate of the bond issue.

  Expected and required rates of return

What is the required return for the overall stock market? What is the required rate of return on a stock with a beta of 0.9?

  How much in new savings will frank have

How much in new savings will Frank have available at age 65 before subsequent withdrawals? How much will he have left at age 90? What is the present value of that sum at age 65

  Net present value analysis frequently ignores

Investment banks are heavily involved in the origination process for all but which of the following? Net present value analysis frequently ignores:

  What was dawns out-of-pocket amount

After age 35 she no longer adds to the account, but the money continues to compound. What was Dawn's out-of-pocket amount?

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