What is the rate of return on the stock

Assignment Help Finance Basics
Reference no: EM131165897

Investors expect the market rate of return this year to be 12%. A stock with a beta of .5 has an expected rate of return of 10%. If the market return this year turns out to be 9%, what is the rate of return on the stock?

Reference no: EM131165897

Questions Cloud

Information regarding the seafield resources : The following is some additional information regarding the Seafield Resources' mining opportunity mentioned in the chapter opener.
Would fall under mistake of judgement or mistake of fact : Jason told Polly that he wanted a refund. Polly told Jason the he was not entitled to a refund because she did not lie and as far as she knew, there was nothing wrong with the car. Is jason entitled to a refund? Would this fall under Mistake of Ju..
Create a set of use cases for the picnics r us system : Create a set of use cases for the following system: Picnics R Us (PRU) is a small catering firm with five employees. During a typical summer weekend, PRU caters 15 picnics with 20 to 50 people each.
Calculate the expected value and the variance of lisa income : Lisa just inherited a vineyard from a distant relative. In good years (when there is no rain during harvest season) she earns R100 000 from the sale of grapes from the vineyard. Calculate the expected value and the variance of Lisa's income from th..
What is the rate of return on the stock : Investors expect the market rate of return this year to be 12%. A stock with a beta of .5 has an expected rate of return of 10%. If the market return this year turns out to be 9%, what is the rate of return on the stock?
Are there particular applications in pharmaceutical industry : What are the key areas in which contract law has evolved from traditional concepts, to addressing equitable solutions or complex modern day transactions and structures?
Create a set of use cases for the of-the-month club system : Create a set of use cases for the following system: Of-the-Month Club (OTMC) is an innovative young firm that sells memberships to people who have an interest in certain products.
Under variable or absorption costing : Required: Under each of the following conditions, state (a) whether operating income is higher under variable or absorption costing and (b) the amount of the difference in reported operating income under the two methods. Treat each condition as an i..
What is the variance and standard deviation : What is the variance and standard deviation for the number of right answers for someone taking a 100 question short answer test where each answer is graded either correct or incorrect if the person knows 80% of the subject material for the test th..

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate expected rates of return on the following stocks

calculate expected rates of return on the following stocks. the risk-free interest rate is 7.a. a stock whose return is

  Briefly explain what the trends the data shows and develop

a. Present a graph or table of the data b. Briefly explain what the trends the data shows and develop an argument for what the data shows about trends in payments and how it affects banks and bank operations.

  Why are foreign currency futures contracts more popular

1 the authors state that empirical tests of purchasing power parity have for the most part not proved ppp to be

  Questions based on basic accounts and finance

Multiple Choice questions on basic accounts and finance - Corporations that do not issue financial securities such as stock or debt obligations

  What is the real risk-free rate of return

On the basis of these data, what is the real risk-free rate of return? Round your answer to two decimal places.

  Fifteen years ago john set aside 100000 in case of a

fifteen years ago john set aside 100000 in case of a financial emergency. today that account has increased in value to

  The present market value of the bonds is 1125 if the bonds

alaska power company issued 1000 bonds that have an annual coupon rate of 7.5. the present market value of the bonds is

  Steps of the capital budgeting process

Discuss the pros and cons of applying different investment decision rules when faced with the choice of investing corporate funds. Provide at least two examples.

  Mead motors purchases an automobile

Mead Motors purchases an automobile for its new car inventory from Generous Motors which finances this transaction through its financial subsidiary, Generous Motors Credit Company. Mead pays no funds to Generous Motors or GMCC untilj it sells the aut..

  What reservations might you have about relying on the model

The relationship between total operating cost and quantity produced. What reservations might you have about relying on the above model for decision-making purposes?

  Models of automatic dishwashers

DeMarcus Industries manufactures a widget used in several models of its automatic dishwashers. Monthly production costs for 5,000 units are:

  Investment time horizon is a bit long

A long-term bond of the government of the United States is always totally safe. Ths is in terms of dollars received. However, there seems to be a problem where the price of bond always fluctuates when there is change in the interest rates.

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