User Account

All Pages

What is the expected return of qmi

Assignment Help Finance Basics
Reference no: EM133069113

The returns of a stock, QMI, is described by the following regression rQM I = α + βrindex + e where α = 0.01% and β = 1.2 are constants, rindex is the index return and e is a residual term with mean zero and standard deviation of 1%. If the index return on a given day is 5%, what is the expected return of QMI?

Reference no: EM133069113

Questions Cloud

Determining the new common equity : Levine Ross Inc. (LRI) has the following targeted capital structure: debt=25%, preferred stock=15% and common stock=60%. LRI's tax rate is 40%, and investors ex
Prioritize the investments in the order of return : You are trying to choose among three investments described below: Prioritize the investments in the order of return.
What is the future of nfts : 1a. What is the future of NFTs? (e.g. its role in digital assets on Mark Zuckerberg's Metaverse), Digital barter (bartering using digital assets)
What method must be used under IFRS to amortize the discount : ABC Corporation issued a $ 1,000,000 bond due in 5 years which bears an annual interest rate of 5%. What method must be used under IFRS to amortize the discount
What is the expected return of qmi : The returns of a stock, QMI, is described by the following regression rQM I = a + ßrindex + e where a = 0.01% and ß = 1.2 are constants, rindex is the index ret
Define concepts of changing marketing landscape : Define the concepts of the changing marketing landscape. Use articles, internet sources, or marketing textbooks.
Prepare the journal entry for wood to record the sale : Wood estimates a recourse liability of $7,000 associated with the transaction. Prepare the journal entry for Wood to record the sale
Initial cash flow for building project : Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $640,000. The lot was recently appraised at $810,000. At the time of the purch
Find the amount of time needed : In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determining the option valuation model

If the yield volatility for a five-year put option on a bond maturing in 10 years is specified as 24 %. Based on today's interest rates, the modified duration

  Expected interest rate on treasury securities

Assuming that the liquidity premium theory is? correct, on March? 5, 2010, what did investors expect the interest rate to be on the? one-year Treasury bill

  When attempting to understand human behavior

When attempting to understand human behavior, psychologists often look to the roles of nature and nurture.

  Four major financial innovations take the blame

Traditional banking business has declined in both size and profitability. Four major financial innovations take the blame. What are they?

  What is the implied federal tax rate

If the municipal bond yield is 1.00% and the taxable equivalent yield is 1.50% and the state tax rate is 5%, what is the implied federal tax rate?

  Discuss about selling stocks in an efficient market

Your friend, Steve, believes that since capital markets are efficient, he doesn't need to read the financial press or be involved in stock research before.

  What is the maturity risk premium for the security

Assume that a 3-year Treasury security yields 3.70%. Also assume that the real risk-free rate (r*) is 0.75%, and Inflation is expected to be 2.25% annually.

  Main sources of profitability

Like the securities they hold as assets and the securities they issue; and their main sources of profitability?

  What is the apr used for this loan

You obtained a loan of $20,000 to finance your home improvement project. Based on a monthly compounding over 24 months, the end -of-the-month equal payment was figured to be $922.90. What is the APR used for this loan?

  Determine change in demand

Estimate how much the demand for Florida Indian River oranges would change as a result of a 10% rise in the price of Florida interior oranges, and vice versa.

  Should three hills add a second repairperson each shift

Simulate this proposed maintenance system change over a 15-generator breakdown period. Select the random numbers needed for time between breakdowns from the second-from-the bottom row of Table 14.4 (beginning with the digits 69).

  Calculate the changes in ebit and earnings for common stock

AFB has entered into a contract to produce and sell an additional 15,000 latches in the coming year. Use the DOL, DFL and DTL to predict and calculate the changes in EBIT and earnings for common stock.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd