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

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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