What is the expected return on stock a

Assignment Help Finance Basics
Reference no: EM133377569

Question: Stock A has beta of 1.4. The risk free rate is 4.6% and the expected risk premium on the market portfolio is 6%. What is the expected return on Stock A?

Reference no: EM133377569

Questions Cloud

What is the expected return on the optimal risky portfolio : The correlation coefficient between the returns of A and B is 0.8. The risk-free rate of return is 3.4%. What is the expected return on the optimal risky
Importance of maintaining anonymity : Rachel realizes the importance of maintaining anonymity while receiving responses as homosexuality is such a sensitive issue.
Current yield-to-maturity, or a non-callable bond : callable bond with positive convexity (assuming all other characteristics are the same)? Assume that both bonds currently have the same YTM, and explain your
How has stability of tenure contributed to apple : How has stability of tenure (or the lack thereof) contributed to Apple's success or struggles over the years? Please use examples from the documentary
What is the expected return on stock a : The risk free rate is 4.6% and the expected risk premium on the market portfolio is 6%. What is the expected return on Stock A
Do you believe therapist has a duty to notify authorities : The therapist has a duty to notify the authorities? Why or why not? If she discloses the information could this be considered a breach of confidentiality?
What is the difference between causation and cash accounts : What is the difference between causation and cash accounts? Define and present a simple example of a Balance Sheet, Income Statement and Cash Flow.
Relationship between futures and underlying cash markets : Find research evidence on the relationship between futures markets and their underlying cash markets and, in particular, how prices converge
How to evaluate the effectiveness of different recruiting : You are to share your knowledge about how to evaluate the effectiveness of different recruiting and employee selection methods by applying human resource manage

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial statements for the snider corporation

Using the financial statements for the Snider Corporation at the next page, calculate the 13 basic ratios we have learned. (*Includes 36,100 in lease payments.)

  What is the most you would pay for this cash flow

You have an opportunity to purchase for $1,000 the follwing cashstream flow: $60 every year for 10 years and $1,000 at the end of the 10 year period. What is the most you would pay for this cash flow stream if your required return was 8%. Would th..

  Explain and compare the different kinds of investment

garnett plc. has seen sales in one of its product lines decline over the last two years. the production is currently

  Formula for estimated share of common stock

A) Formula for estimated share of common stock B) If price is $1.00 and dividends are $1.50 per share with 2% per year, what would be required return?

  Should the film maker make the investment

Refer to the information above. Assuming that the film maker issues the new security, the net present value (NPV) for this project is closest to what amount? Should the film maker make the investment?

  Clara tax return in 2020

Assume that Clara's best friend, Marlene, who is 67 and legally blind. is in poor health and has only a meager Social Security income of $3,250 annually. Clara

  Calculate the current price of the bond

A $1,000 face value bond currently has a yield to maturity of 8.21 percent. The bond matures in 11 years and pays interest annually.

  How much must you deposit each quarter over

You wish to travel overseas for an extended holiday in four years' time and you estimate you will require $35 000 to pay for the trip. If your bank

  Using discounted cash flow approach to find cost of equity

The earnings, dividends, and stock price of Carpetto Tech Corporation, are expected tp grow at 7 percent every year in the future. Carpetto's common stock sells for $23 each share,

  Heavenly hotels inc will not pay any dividends for the next

heavenly hotels inc. will not pay any dividends for the next three years. heavenly will pay its first dividend of 2.00

  Computation of npv and selection of a project

Computation of NPV and selection of a project and suppose that Orchid has a total capital budget of $60 million

  Why did mercks price fall so significantly

Why did Merck's price fall so significantly? Try to incorporate concepts from session 4 and current session. What is the expected return on Elsenore?

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