What is the required return on the market

Assignment Help Macroeconomics
Reference no: EM13324274

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?

Reference no: EM13324274

Questions Cloud

Illustrate and explain what effect these changes have on the : Consider the following events: Scientists reveal that consumption of oranges decreases the risk of diabetes and at the same time farmers use a new fertilizer that makes orange trees more productive.
What output level would the firm produce what would its : At a price of $40, what output level would the firm produce? What would its profits be
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.

Reviews

Write a Review

Macroeconomics Questions & Answers

  By how much has the franc enchanced or depreciated

By how much has the Franc enchanced or depreciated against the dollar.

  Explain why do economists believe that the cpi

Explain why do economists believe that the CPI overstates the rate of inflation

  What can a govt do to raise the living standard

What can a government do to raise the living standard of an economy in the long term -Encourage firms to adopt the best technology in the production process. -Adopt measures to attract foreign investments in the economy.-Increase the period of free e..

  Which of the type of protection convey negative externality

consider two ways to protect your car from theft. The Club ( a steering wheel lock ) makes it difficult for a car thief to take your car. Lojack ( a tracking system) makes it easier for the police to catch the car thief who has stolen it.

  Elucidate why the mp-p relation is deficient

Elucidate why the MP/P relation is deficient as the sole mechanism for determining the optimal level of resource.

  Explain the impact of the parameters

An electric company must decide whether to install a scrubber to reduce sulfur dioxide emissions from its electric generating station. The plant currently has no such pollution control equipment, and must buy SO2 permits to cover its emissions at ..

  Profit maximizing input combination rule

Use the following information for a perfectly competitive firm and the profit-maximizing input-combination rule to identify how many workers firm will employ to maximize profits.

  Possibility of potential adoptive parents

As we know that there are some people who cannot have children who want to adopt, and there are pregnant women who for various reasons want to put their babies up for adoption

  Explain why do we have such extreme diversity

Explain why do we have such extreme diversity in pay in the US-port stars, actors, others making very high salaries while others make much less.

  Elucidate how might raise the chance that the employee

Elucidate how might  raise the chance that the employee would retire earlier as compared with the situation where the employee had to pay for his own health insurance.

  Industry in a monopolistically competitive industry

The demand curve faced by a industry in a monopolistically competitive industry which is more elastic than the perfectly competitive firm's demand curve.

  Why no part of the change is due to the income effect

If my optimal choice for two goods (cookies and milk) is different from two different weeks (for example, week one is C:8,M:16 and week two is C:16,M:16) BUT INCOME IS THE SAME throughout all weeks ($8).

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