What is the geometric average return on the stock

Assignment Help Accounting Basics
Reference no: EM133116257

Question - Company Name= Meta (Facebook) 

1. If markets are efficient, explain whether actual returns on your stock can be higher or lower next year than the current expected return on 8.68%

2. If the return on your stock equals the expected return indicated by the CAPM next year and then suffers a return of negative 98% in the subsequent year, show what is the geometric average return on the stock over those two years (i.e., the compounded annual return)? 

3. If the market portfolio unexpectedly goes down 20% (i.e., there is a -20% return on the aggregate market of stocks and other securities in existence), what return would likely occur on your stock?

Reference no: EM133116257

Questions Cloud

What is the internal rate of return : Question - King's Department Store is contemplating the purchase of a new machine at a cost of $18,139. What is the internal rate of return
What is Barber return on equity : Barber and Atkins are partners in an accounting firm and share net income and loss equally. What is Barber return on equity
Foreign corrupt practices act violations. : Provide examples of Foreign Corrupt Practices Act violations. Identify company actions or red flags that might indicate violations of the Act.
Charismatic-transformational and authentic leadership : Distinguish between charismatic, transformational, and authentic leadership. Could an individual display all three types of leadership?
What is the geometric average return on the stock : If the return on your stock equals the expected return indicated by the CAPM next year, What is the geometric average return on the stock
KIT502 Web Development Assignment : KIT502 Web Development Assignment Help and Solution, University of Tasmania - Assessment Writing Service
Prepare a lease payment schedule for Amaton Ltd : Prepare a lease payment schedule for Amaton Ltd, showing the division of the lease payment into interest and principal components for the life of the lease
What is the bond anticipated yield : What is the bond's anticipated yield? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest whole number.
Calculation of monthly mortgage payment : Rebecca after being graduated with an MBA secured employment in investment banking which denotes that she has got into a relevant profession indicating a stable

Reviews

Write a Review

Accounting Basics Questions & Answers

  Cases relate to the valuation of assets

Cases relate to the valuation of assets

  What is the project initial outlay

The project require an initial investment in net working capital of $15,077 which would be recouped at the end of the project. What is project's initial outlay

  What quantitative information is relevant to the decision

Which type of non routine operating decision is involved here? What are the managers' decision options? What quantitative information is relevant to the decision?

  Determine the net present value

The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively. Determine the net present value

  Logan products computes its predetermined overhead rate

logan products computes its predetermined overhead rate annually on the basis of direct labor-hours. at the beginning

  Explain the current account balance

Service imports, $14.1 billion; foreign investments from the ROW, $9.9 billion; service exports, $6.6 billion; total official foreign exchange reserves.

  What is the cml and why is it important

What is the CML? Why is it important? What is the SML? Why is it important? What is beta? Why is it important? Does political risk affect required returns?

  Compute the annual depreciation on the new equipment

Compute the annual depreciation on the new equipment that should be provided for the fiscal year beginning June 1, 2019.

  Record prepaid expenses and unearned revenues in balance

Quake Co. had the following transactions in the last two months of its fiscal year ended May 31.

  Explain to chris process and factors used to make decision

Does Angela have a contract of service or a contract for service with Stenbach Service Centre As the company's Payroll Supervisor, explain to Chris the process?

  Compute the current ratio and debt ratio

Compute the following ratios for 2017 from the financial statements: Current Ratio and Debt Ratio

  Considering the cash flow impact of the equipment as well

xyz company has the option to purchase additional equipment that will cost about 42000 and this new equipment will

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