What is the expected return

Assignment Help Accounting Basics
Reference no: EM133022196

Question - The risk-free return is 3.4% and the market risk premium is 12.5%.

What is the expected return for the following portfolio?

Stock

Beta

Investment

AAA

4.0

$400,000

BBB

2.5

$1,300,000

CCC

2.0

$1,600,000

DDD

0.6

$1,000,000

Reference no: EM133022196

Questions Cloud

What would be a fair price for these bonds : The return on other bonds of similar risk is 15%, so we decide to offer a 15% coupon interest rate. What would be a fair price for these bonds
Will candy receive a margin call : If the Z stock subsequently rises in price to $58 per share, what is the actual margin in Candy's account? Will Candy receive a margin call
How many years have passed : You purchased house for $500,000. Today, it is worth $874,362. How many years have passed if the price of the house has increased at annual rate of 3.2 percent
What is the firm marginal cost of capital : Currently, the firm's capital structure has $250 million of debt, $55 million of preferred stock, What is the firm's marginal cost of capital
What is the expected return : The risk-free return is 3.4% and the market risk premium is 12.5%. What is the expected return for the following portfolio
Prepare the journal entries to record their issuance : Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2021, interest on June 30, 2021 and interest on December 31, 2021
How much does the insurance policy cost per month : On July 1, 2020, the bakery purchased a one-year insurance policy for $12,000 cash. How much does the insurance policy cost per month
Calculate the value of stock at the end of october : Variable overheads are 6% of sale value. Fixed overheads, including depreciation of RM9,100, are RM26,400 per month. Calculate the value of stock
How much money will be in the account in three years : A couple deposits $367 per month into an account paying 3% compounded monthly. How much money will be in the account in three years

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the entry on December

What is the entry on December 31 assuming Jefferson uses the net method, and the obligation is still unpaid on the said date

  Compute the total price and quantity variances for

the following direct materials and direct labor data pertain to the operations of laurel company for the month of

  What type of possible misstatement

Approximate interest expense using the basis of average interests rates and overall monthly notes payable could detect what type of possible misstatement?

  Labor price and quantity variances

a. What were QuickyLube's labor price and quantity variances for the most recent week? b. What factor(S) could explain QuickyLube's labor variances?

  Compute the gain on the sale of the machine

Towers Elevator Company plans to sell one of its machines to another company for $102,000. Compute the gain on the sale of the machine

  Determine the upper limit of deviation

The tolerable deviation rate at 5%, and the expected deviation rate at 1%. Determine the upper limit of deviation for each of the controls

  Find the cost of goods sold before overallocated

Find the cost of goods sold before overallocated or underallocated manufacturing overhead adjustment during April 2021. Round to the nearest cents

  Discuss the fifo method and lifo method

Assuming there are 310 units on hand, compute the cost of the ending inventory under the FIFO method and LIFO method

  Discuss company is general motors and their sec 10-k

Company is General Motors, and their SEC 10-K report is attached with all the information needed.

  What is the estimated cost of the ending inventory

At May 31, Sunland Company has net sales of $400,000 and cost of goods available for sale of $278,000. What is the estimated cost of the ending inventory

  Prepare Blackmon journal entries for January

The customer takes delivery of the device on January 1, 2019, and begins the locator service on that date. Prepare Blackmon journal entries for January

  Prepare the general journal entries for april and may

Use this information to prepare the General Journal entries (without explanation) for April 15 & May 15. If no entry is required then write "No Entry Required"

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