What is the expected return on a

Assignment Help Finance Basics
Reference no: EM132537801

Asset A has a reward to risk ratio of .075 and a beta of 1.5. The risk-free rate is 5%. What is the expected return on A?

Reference no: EM132537801

Questions Cloud

Show the journal entry on Pearls books for debt restructure : Pearl Co. owes $199,800 to Martinez Inc. The debt is a 10-year, 11% note. Show the journal entry on Pearl's books for debt restructure
Estimate the material-handling department cost behaviour : Estimate the Material-Handling Department's cost behaviour using the high-low method. Use an equation to express the results of this estimation method.
Calculate the roa for current values and new values : As the operations manager for Valley Kayaks (as described in the previous problem), you find yourself faced with an interesting situation.
Calculate the total product cost of one chair : Diana decides that her workshop is capable of producing a normal output of 1000 chairs annually. Calculate the total product cost of one chair
What is the expected return on a : Asset A has a reward to risk ratio of .075 and a beta of 1.5. The risk-free rate is 5%. What is the expected return on A?
Funds at the risk-free interest rate : What is the portfolio beta with 125% of your funds invested in the market portfolio via borrowing 25% of the funds at the risk-free interest rate?
Determine at what amount the land should be recorded : Determine at what amount the land should be recorded at January 1, 2020, and the interest expense to be reported in 2020 related to this transaction
Explicate the reasons behind the popularity : Life Insurance is a very popular insurance type in Bangladesh. Explicate the reasons behind the popularity of this financial product.
Prepare journal entries to record total cash dividend : Prepare journal entries to record the following: A total cash dividend of $90,000 was declared and payable to stockholders of record

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the meaning of source of finance explain the long

what is the meaning of source of finance? explain the long term sources.equity sharespreference sharesdebenturesterm

  Complete a set of financial statements based on transactions

Complete a set of financial statements based on the transactions

  Chips home brew whiskey management forecasts that if the

chips home brew whiskey management forecasts that if the firm sells each bottle of snake-bite for 20 then the demand

  What will the cash flows for this project be

The firm has a tax rate of 30 percent, an opportunity cost of capital of 0 percent, and it expects net working capital to increase by $93,000.00 at the beginning of the project.

  Compute average annual rate of return

Suppose you are considering how to finance your child's college education. The child is 3 years old now so there are 15 years to go before your child enters college at age eighteen.

  Indicate which test you are performing show the hypotheses

Indicate which test you are performing; show the hypotheses, the test statistic and the critical values and mention whether one-tailed or two-tailed. There is sufficient evidence to conclude that the claim of this hypothetical weight loss programs ha..

  What is the npv of the better machine

Using the replacement chain method, what is the NPV of the better machine? 2) Using the EAA method, what is the EAA of the better machine?

  What is the yield that trevor would earn by selling

Trevor Price bought 10-year bonds issued by Harvest Foods five years ago for $934.21. The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of the bonds is $1,003.72, what is the yield that Trevor would earn by s..

  What kind of deal did the running back scamper off with

The contract called for $12 million immediately and a salary of $2.9 million in 2018, $8.3 million in 2019, $12 million in 2020, $8.8 million in 2021 and 2022,

  Can you infer the required return for equity

Levered and Unlevered P/E Ratios (Medium) The following proforma was prepared for a firm at the end of 2009 (in millions of dollars).

  Financial statements to potential investors

A client has a business in Iraq. It is 100% owned as a U.S.-owned investment. What are some of the considerations that I need to take in regards to preparing financial statements to potential investors that are based here in the U.S. Also, if the ..

  Value-based management model

What is the price per share based on the value-based management model?

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