What is the expected return of a stock with a beta

Assignment Help Financial Management
Reference no: EM13871554

A certain stock has a beta of 1.3. If the risk-free rate of return is 3.2 percent and the market risk premium is 7.5 percent, what is the expected return of the stock? What is the expected return of a stock with a beta of .75?

Reference no: EM13871554

Questions Cloud

What make crossborder financial statement analysis difficult : What makes cross-border financial statement analysis difficult? What alternatives does an MNC have when investors in a foreign country demand accounting and financial information?
Do you agree with the court ruling why or why not : The basic facts of the case including the state, city, and whether the original trial court was a state or federal court, The legal issue(s) the court dealt with in the case, The court's ultimate legal ruling in the case and Do you agree with the cou..
Elect to report any governmental or enterprise fund : In the fund financial statements a government may elect to report any governmental or Enterprise Fund as major if the government considers financial information on that fund particularly important to statement users.
Implement the same trading idea without using forwards : Suppose you have a portfolio that contains stocks that track the market index. You now want to change this portfolio to be 25% in commodities and 75% in the market index. How would you use derivatives to implement your strategy? How would you impleme..
What is the expected return of a stock with a beta : A certain stock has a beta of 1.3. If the risk-free rate of return is 3.2 percent and the market risk premium is 7.5 percent, what is the expected return of the stock? What is the expected return of a stock with a beta of .75?
Representative investors average degree of risk aversion : The expected rate of return on the market portfolio is 9.50% and the risk–free rate of return is 1.00%. The standard deviation of the market portfolio is 17.75%. What is the representative investor’s average degree of risk aversion?
Problems that are encountered in assembling and managing : problems that are encountered in assembling and managing integrated health care delivery systems?
What risks did the authors of the constitution take : What risks did the authors of the Constitution take in the Revolutionary War? How would they have been seen differently by historians had the United States not won the war? Why is it important to protect the citizens of a democratic country from a..
What are the characteristics of a domestic bond : What are the characteristics of a domestic bond? an international bond? a foreign bond? a Eurobond? a global bond? What are the benefits and drawbacks of offering securities in bearer form relative to registered form?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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