What is the expected return on a stock with a beta

Assignment Help Financial Econometrics
Reference no: EM13333887

what is the expected return on a stock with a beta of 1.50 if the riskless rate is 5% and the expected market return is 9%?

Reference no: EM13333887

Questions Cloud

What are some of the operations management practices : What are some of the operations management practices that can help bring manufacturing back to the U.S? How can a focus on quality improve manufacturing?
Determine her final speed at the top : A 60-kg skier with an initial speed of 16 m/s coasts up a 2.50-m high rise, Find her final speed at the top in m/s, given that the coefficient of friction between her skis and the snow is 0.08
Determine what apr rate should you charge your customers : As a jewelry store manager, you want to offer credit, with interest on outstanding balances paid monthly. To carry receivables, you must borrow funds from your bank at a nominal 6%, monthly compounding.
What is the frequency of these waves : Under normal conditions, humans radiate electromagnetic waves with a wavelength of about 9.0 microns. What is the frequency of these waves
What is the expected return on a stock with a beta : what is the expected return on a stock with a beta of 1.50 if the riskless rate is 5% and the expected market return is 9%
Mutually exclusive projects available to global investments : Consider the following two mutually exclusive projects available to Global Investments Inc. The appropiate discount rate of the projects is 10 percent. Global Investments chose to undertake project A. At a luncheon for shareholders, the manager of a ..
Caculate the fair value of a stock with a beta : caculate the fair value of a stock with a beta of .90 if the riskless rate is 4% and the expected market return is 7% if the stock is expected to pay a dividend $.50 and is expected
Create a very abstract programming environment : Find these header files in the Visual Studio system and determine the smallest (i.e., most negative) and largest (i.e., most positive) values that can be represented as int, unsigned int, long, unsigned long, float and double.
Find the average angular acceleration that disk experiences : A uniform disk is constrained to rotate about an axis passing through its center and perpendicular to the plane of the disk. find the average angular acceleration that the disk experiences

Reviews

Write a Review

Financial Econometrics Questions & Answers

  What were brandywines net income and total profit margin

Brandywine homecare, a not-for-profit business, had revenues of $12 million in 2004. Expenses other than depreciation totaled 75% of revenues, and depreciation expenses was $1.5 million.

  What was the receivables turnover during the past year

Pujols Lumber Yard has a current accounts receivable balance of $441,516. Credit sales for the year just ended were $7,058,320. What is the receivables turnover

  Find future fund for kelly at the beginning of each month

Find the future fund for Kelly, who is saving $350 at the beginning of each month for the next 4 years, if her savings account bears 7 1/2% interest compounded quarterly.

  What are mergers and acquisitions

What are mergers and acquisitions, why do companies merge and how can a merger occur

  How to compute the required rate of return

Russo's Gas Distributor, Inc. wants to determine the required return on a stock with a beta coefficient of 0.5. Assuming the risk free rate of 6 percent and the market return of 12 percent.

  What would the future value be for an annuity due

What's the future value of a 3%, 5-year ordinary annuity that pays $400 each year. If this was an annuity due, what would its future value be.

  Determine what is qms weighted average cost of capital

If the cost of common equityfor the firm is 17.1%, the cost of prefered stock is 9.3%, the before tax cost of debt is 7.7% and the firms tax rate is 35%, what is QM's weighted average cost of capital

  What will be the current value of a share of avrils stock

avril synchronistics will pay a dividend of $1.30 per share this year. it is expected that this dividend will grow by 5% each year in the future.

  Determine out the value of total assets of business

A had a capital of $75,000 on 1st April , 2009. He had also goods amounting to $15,000 which he had puchased on credit and the payment had not been made. Find out the value of total assets of business.

  Determine what is the equity after 15 years

A couple has decided to purchase a $120000 house using a down payment of $18000. They can amortize the balance at 10% over 20 years. a) What is their monthly payment

  How much money do need to deposit now to fund

You want to withdraw $350 once year at the end of each year starting 2 years from now and ending 6 years from now. r=8%. How much money do you need to deposit now to fund the account fully

  What is the estimated cost of common equity using the capm

Booher Book Stores has a beta of 1.3. The yield on a 3-month T-bill is 5% and the yield on a 10-year T-bond is 6.5%. The market risk premium is 6%. What is the estimated cost of common equity using the CAPM

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