What is the required rate of return on b stock

Assignment Help Operation Management
Reference no: EM132951377

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 2.75%, what is the required rate of return on B's stock?

Reference no: EM132951377

Questions Cloud

Calculate jal profit or loss from hedging : Why might JAL wish to hedge their currency risk how can they do so using a forward contract (briefly explain your answer)?
What is the balance in margin account : Suppose that on Monday, 7 July, you assume a long position in one December British pound futures contract at the futures price of $1.10/£. The initial margin is
Expectations of managing earnings downward : 1. The concept of accounting quality has several dimensions, but two characteristics often dominate: the accounting information should be a fair representation
What is the required rate of return on the new portfolio : Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 4.20%.
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 2.75%, what is the required rate of retu
What is the present value of the cash flow streams : What is the present value of the following cash flow streams at an interest rate of 7.25%? Year 0 = 750 Year 1 = 2450 Year 2 = 3175 Year 3 = 4400
Describe the infectious and non-infectious diseases : What is the difference between infectious and non-infectious diseases?
What is the project payback period : Talent Inc. is considering a project that has the following cash flow data. (a) What is the project's payback period?
Discuss the capital budgeting : Discuss the capital budgeting you had to do to complete the project. What types of projects do you think require the least detailed and the most detailed analys

Reviews

Write a Review

Operation Management Questions & Answers

  Employees to gain their support when implementing strategy

Research an insurance company such as BCBS, Aetna, etc. and outline the steps in its credentialing process. A project construction network is shown with activity times, compute the ES, LS, EF, LF and Slack for each activity. What is the best way to c..

  Find the planned order releases for all items

One unit of A is composed of two units of B and three units of C. Each B is composed of one unit of F. Find the planned order releases for all items.

  An advantage of the matrix organization

Which of the following is a frequent goal of a learning organization? An advantage of the matrix organization is that it:

  What is the decision facing burger king

What is the decision facing Burger king? What factors are important in understanding this decision situation? What are the alternatives?

  Discuss several advantages of using the m/m/1 waiting line

Discuss several advantages of using the M/M/1 waiting line queuing model. Clearly explain the reasons for your choices.

  Why is it important to keep adequate records

Why is it important to keep adequate records and make sure that your billing is correct?

  Purchased a sirius satellite receiver

You recently purchased a Sirius satellite receiver. The monthly subscription rate is $12.95.

  Company mention all three components of triple bottom line

Does the company mention all three components of the triple bottom line?

  Environmental groups has issued report on global warming

A coalition of concerned scientists and environmental groups has issued a report on global warming,

  Service sectors in the developed economies

Discuss how globalization has impacted the manufacturing and service sectors in the developed economies of the United States and Europe b) What is the WTO.

  Opinion about hospitals apologizing for medical errors

What is your opinion about hospitals apologizing for medical errors?

  Views on leadership development

Your assignment this week is to start on this reflective process by interviewing a business professional about their views on leadership development.

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