What is the required rate of return on the stock market

Assignment Help Macroeconomics
Reference no: EM13324272

Huntsman International’s stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 4.30%. What is the required rate of return on the stock market? (Hint: First find the market risk premium.)

Reference no: EM13324272

Questions Cloud

Calculate the elasticity of demand and elasticity of supply : Calculate the elasticity of demand and elasticity of supply; what do you conclude from these answers
Illustrate this using a graph showing a decrease in supply : Analyze why the prices of gasoline rose so high over the summer. Was it because OPEC cut back production and the number of people driving was more? Illustrate this using a graph showing a decrease in supply coupled with an increase in demand, resulti..
What is the required return on the market : With a beta equal to .85 and a risk-free rate of 5%, if the required return on Navistar, Inc. is equal to 9%, what is the required return on the market, rM , assuming the market is in equilibrium?
Explain the symbols for the elements in the compound : 1) the symbols for the elements in the compound. 2) the oxidation numbers of the elements involved and write them as superscripts to the right of the elemental symbols
What is the required rate of return on the stock market : Huntsman International’s stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 4.30%. What is the required rate of return on the stock market? (Hint: First find the market risk premium.)
Explain the gas in mmhg if the volume is changed : The volume of a gas is 2.50 L, measured at 1.00 atm. What is the pressure of the gas in mmHg if the volume is changed to 9.41 L
What is the maximum amount that the money supply can : What is the maximum amount that the money supply can increase when $1,000 cash is injected into a banking system with a 20-percent reserve requirement? Give two reasons why this maximum may not be reached.
Explain a solution of a specific vitamin has max : A solution of a specific vitamin has ?max = 223 nm and a concentration of 8.31 × 10-7 M. The absorbance of the solution at 223 nm is A = 0.180. What is the molar absorptivity of the vitamin at 223 nm?
Define what is the pressure of the gas in mmhg : The volume of a gas is 2.50 L, measured at 1.00 atm. What is the pressure of the gas in mmHg if the volume is changed to 9.41 L

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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