What is the required rate of return on b stock

Assignment Help Operation Management
Reference no: EM132951365

Stock A's stock has a beta of 1.30, and its required return is 12.75%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock?

Reference no: EM132951365

Questions Cloud

Calculate the return paid on lisa ppn investment : Lisa invests in a PPN with a participation rate of 40%. The index started at 420 and matured at 528. Calculate the return paid on Lisa's PPN investment.
How do you find the sharpe ratio : A portfolio had a return of 12% and a volatility of 25%. The risk-free rate was 3%. How do you find the Sharpe ratio?
What is the market value of the company : Skywalker Inc. is proposing a rights offering. Presently there are 183,000 shares outstanding at $85 each. There will be 61,000 new shares offered at $52 each.
Explain proportion of the direct costs : How much money did the company receive before paying its proportion of the direct costs?
What is the required rate of return on b stock : Stock A's stock has a beta of 1.30, and its required return is 12.75%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of retu
Assessing the investment based on the total cash flows : Explain why an investor should consider the time-pattern of cash flows and the variability of the cash flows associated with a multi-period investment, rather t
Funding of longer-term assets with short-term borrowing : During the GFC, the funding of longer-term assets with short-term borrowing was identified as a point of weakness in the operations of financial institutions.
Explain the meaning of the terms financial assets : Explain the meaning of the terms 'financial assets', 'financial instruments' and 'securities'. What is the difference between these terms?
What is the payback period for project : Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can either market the game as a traditional board game or as an interactive DVD, b

Reviews

Write a Review

Operation Management Questions & Answers

  Analyze the followership article from the library

Analyze the followership article from the library. Explain your support or opposition to the author's position.

  Key trade-offs in determining the economic order quantity

What are the key trade-offs in determining the economic order quantity? In the early days of paint manufacturing, manufacturers of paint used to produce paint of appropriate colors and sizes to be sold in retail stores. Discuss what impact, if any, t..

  Cultures affect the six hr functions

Corporate Culture is discussed throughout your text as having a significant impact on HR tasks. How might the following cultures affect the six HR functions?

  Healthcare facilities becoming either affiliated with

Today we are seeing more and more healthcare facilities becoming either affiliated with or being bought be large healthcare corporations. Is this practical or should healthcare facilities remain free standing. Do not forget to think about rural areas..

  Centralized or decentralized approach to decision making

Does FedEx have a centralized or decentralized approach to decision making?

  What are the annual holding? costs

Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors 15,000 units. Southeastern estimates its annual holding cost for this item to be ?$ 22 per unit. ..

  Studying the course managing cultural diversity

What was the most interesting part in studying the course "Managing Cultural Diversity"?

  Nonemployee union solicitation activity

In October, the union began an organizing drive involving nursing personnel employed at the Medco Hospital (the employer). “Visitors, patients and other nonemployees may not solicit or distribute literature on any hospital property for any purpose at..

  What is nominal group technique

What is nominal group technique? When should it be used? Describe what occurs in each of its five phases. What is the purpose for each step?

  Business ethics and corporate governance

A secretary who has worked for your corporation for fifteen years is involved in a car accident in which she permanently loses the use of her right hand.

  Develop implementation plan with specific actions

How successful had the organization been in the past with its chosen strategies and business model and how successful is the organization now?

  Litter collection

what you can do to assist in building the anti-litter campaign for the city council. How would your means be effective?

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