What is the expected return on the market

Assignment Help Finance Basics
Reference no: EM13281443

If the risk-free rate is 2.5%, beta of the asset is 1.57, and the expected return of the asset is 13.25%, what is the market risk premium?

What is the risk premium?

What is the expected return on the market?

 

Reference no: EM13281443

Questions Cloud

Explain how much corn syrup and how much water : How much corn syrup and how much water would you need to combine to create 500 ml of 10% corn syrup solution? Explain
What are cash equivalents : How are the company's assets classified?
Determine unit cost of product using activity-based costing : What other actions might Apex consider to increase profitability of the DIY alternator? Provide at least four specific ideas and determine the unit cost of each product using activity-based costing
Explain how many molecules were in the original solution : If you have 375 molecules in a 10^-4 dilution, how many molecules were in the original solution
What is the expected return on the market : If the risk-free rate is 2.5%, beta of the asset is 1.57, and the expected return of the asset is 13.25%, what is the market risk premium?
What is the default risk premium on the corporate bonds : what is the default risk premium on the corporate bonds? Round your answer to two decimal places.
Explain and propose a structure for a c6h15o2n compound : Propose a structure for a C6H15O2N compound that is unstable in aqueous acid and has the following NMR spectra:1H NMR:
How large must the annual payments : They expect their investment account to earn 9%. How large must the annual payments at t = 5, 6, and 7 be to cover Ellen's anticipated college costs?
What would be he initial angular acceleration of the beam : suppose a large crate of 300kg is hung from a uniform steel beam of mass 100kg and 2 meters in length. what would be he initial angular acceleration of the beam

Reviews

Write a Review

Finance Basics Questions & Answers

  The effects of financial planning

Write an APA style paper outlining the effects of financial planning, governance and ethical issues in modern economies.

  Find vl and rsl

Schwarzentraub Industries expected free cash flow for year is $500,000 in the future free cash flow is expected to increase at a rate of 9 percent.

  Ipo-opportunities and threats

Write down the name of some opportunities and threats associated with going public through an IPO.

  Acquisition of bank in developing nation

Explain the issues and risks involved with a financial institution acquiring a bank in an emerging market.

  What is the price of this treasury bill

The U.S. Treasury bill is currently selling at a discount basis of 4.25%. The par value of the bill is $100,000, and will mature in ninety days. What is the price of this Treasury bill?

  What is the real risk-free rate of return

On the basis of these data, what is the real risk-free rate of return?

  Should the firm undertake this project

If the tax rate is 35% and XYZ uses a capital structure of 30% debt and 70% equity. Should the firm undertake this project?

  Calculate break-even point in units

Rosario corporation, which is located in Buenos Aires, Argentina, and manufactures a component used in farm machinery. The company's fixed costs are 4,000,000 each year.

  What has been the trend in mergers and acquisitions in years

What has been the trend in mergers and acquisitions in recent years? Up, down? What are some of the explanations? Is there evidence that the trend may change? The paper can be 800-100 words.

  What is the maximum you should pay for this stock

After this initial period of super growth, the rate of increase in the dividend should decline to 8 percent. If you want to earn 12 percent on investments in common stock, what is the maximum you should pay for this stock?

  What should be the interest rate on 3-year

According to the expectations theory, what should be the interest rate on 3-year, risk free securities?

  Discuss the structure of organization

Discuss and explain the form or structure of the organization you currently work for or one you worked for in the past. Discuss why it it best suited for the conduct of its business.

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