What is abc expected rate of return based on capm

Reference no: EM131931360

Question: ABC has a beta of 0.69. The expected return for the S&P 500 stock index is 10.5 percent and U.S. Treasuries are expected to yield 3.6 percent. Based on the Capital Asset Pricing Model (CAPM), what is ABC's expected rate of return?

Reference no: EM131931360

Questions Cloud

Fictitious defense of slavery : Franklin's "On the Slave-Trade" satirizes the defenders of slavery by using a fictitious defense of slavery by the "divan of Algiers" in 1687.

Evaluate weighted average cost capital of the firm : Aaron's Rentals has 45,000 shares of common stock outstanding at a market price of $27 a share. The common stock just paid a $1.10 annual dividend.

Non-traditional students achieving : Proposition statement: Since many adults do not believe that it is possible to return to college and achieve a degree after being out of school for many years

Find the npv for the truck : ABC Company is considering purchasing a truck. The cash outlay for the truck is $18,000 and will have net cash inflows of $5,100 for each of the next five years

What is abc expected rate of return based on capm : ABC has a beta of 0.69. The expected return for the S&P 500 stock index is 10.5 percent and U.S. Treasuries are expected to yield 3.6 percent.

Death penalty for murders crimes : We are going to use lethal injection and only used the death penalty for murders crimes (5+ individual).

Compute the total carrying costs : ABC Company sells 2, 052 chairs a year at an average price per chair of $128. The carrying cost per unit is $27.87. The company orders 242 chairs at a time.

Compute the risk-adjusted npv of the project : The company is currently interested in investing in the capital project shown below. The return on market is 9.65%, the risk-free rate is currently 8%.

Explain the profit maximising condition of the firm : Explain the profit maximising condition of the firm in such a market. Next, assume ONE change in the market conditions.

User Account

All Pages