What is the investor expected return

Assignment Help Financial Management
Reference no: EM131357892

An investor put 40% of her money in Stock A and 60% in Stock B. Stock A has a beta of 1.2 and Stock B has a beta of 1.6. If the risk-free rate is 5% and the expected return on the market is 12%, what’s the investor’s expected return? (CAPM: Ri = Rf + B(Rm - Rf))

Reference no: EM131357892

Questions Cloud

What is the stock expected price five years from now : Fiveline Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 5.00% per year.  The required rate of return on the stock, rs, is 11.50%. What is the stock's expected price 5 years from now (i.e..
Major limitations of mobile e-commerce : Discuss the major limitations of mobile E-commerce. Which of them are likely to disappear? Why is the electronic job market so popular, especially among the high-tech professions?
Incorporated into security plans : Explain why these topics are critical, and provide real-world examples that illustrate situations in which these topics have been successfully incorporated into security plans. If real-world examples cannot be found, offer your own examples of how..
Define the generalized inverse of f : For each of the following, verify the form of the cdf and then generate 10,000 random variables using the inverse transform. Compare your program with the built-in R functions rlogis and rcauchy, respectively:
What is the investor expected return : An investor put 40% of her money in Stock A and 60% in Stock B. Stock A has a beta of 1.2 and Stock B has a beta of 1.6. If the risk-free rate is 5% and the expected return on the market is 12%, what’s the investor’s expected return? (CAPM: Ri = Rf +..
Communicate to its employees about the attack : Based on your understanding about the attacker and the work environment, how might the company ward off future attacks? What information might the company communicate to its employees about the attack?
Derive a forecasting equation : Graph these data to see whether a linear equation might describe the relationship between the group's television shows and guitar sales. Use the least-squares regression method to derive a forecasting equation
Make last of your thirty investments : You have thirty years until you retire. Today you have no investments. At the end of the year, you will make the first of 30 annual investments of $5,000 in an account that returns 9%, how much will you have on the day that you make the last of your ..
Discuss about the employment opportunity laws : Knowing that Equal Employment Opportunity laws and regulations greatly impact the HR environment, share how job descriptions and job specifications serve HR toward compliance with the laws and regulations. Include at least two of the following maj..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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