What is the required return on the market

Assignment Help Business Management
Reference no: EM13720187

Your investment club has only two stocks in its portfolio; $45,000 is invested in a stock with a beta of 0.8, and $45,000 is invested in a stock with a beta of 1.4. What is the portfolio's beta? Round your answer to two decimal places.

AA Industries’ stock has a beta of 1.7. The risk-free rate is 6%, and the expected return on the market is 10%. What is the required rate of return on AA's stock? Round your answer to two decimal places.

Assume that the risk-free rate is 3.5% and that the market risk premium is 4%.

What is the required rate of return on a stock with a beta of 0.8? Round your answer to two decimal places. %

What is the required rate of return on a stock with a beta of 2.3? Round your answer to two decimal places. %

 

What is the required return on the market? Round your answer to two decimal places. %

Reference no: EM13720187

Questions Cloud

Balance sheet preparation : Balance sheet preparation Use the appropriate items from the following list to prepare in good form Mellark’s Baked Goods balance sheet at December 31, 2015.
Monsighnor fancy invited armory up to the stuart : Monsighnor fancy invited armory up to the Stuart palace on the Hudson for a week at Christmas and they had enormous conversations around the camp fire
What is the distribution of the time : What is the distribution of the time till the next epoch of N2(t) and what is the probability that the next epoch of N (t) is an epoch in N1(t)?
What is a company trying to optimize workcenter layout : Why is the planning phase often referred to as Phase 0 (Zero) of the generic product development process. What is a company trying to optimize in the most common approach to developing a workcenter layout
What is the required return on the market : Your investment club has only two stocks in its portfolio; $45,000 is invested in a stock with a beta of 0.8, and $45,000 is invested in a stock with a beta of 1.4. What is the portfolio's beta? Round your answer to two decimal places.
Consider successful business messages : Consider successful business messages you've received, either as a professional or a customer. How did the formatting of those messages affect their level of success?What does our Business Communication Today textbook have to say about the pro..
What is your effective annual rate : You have an account promising you 12.5% APR with monthly compounding. What is your effective annual rate (EAR)? Enter answer in percents, not decimals.
A process-oriented approach to professional writing : TCO 2 and the class textbook guide students toward using a process-oriented approach to professional writing. What does it mean to use a "process-oriented approach" in writing? Why is this approach advantageous?
Bond valuation and changes in maturity : Bond Valuation and Changes in Maturity and Required Returns. Suppose Hillard Manufacturing sold an issue of bonds with a 10-year maturity, a $1,000 par value, a 10% coupon rate, and semi annual interest payments.

Reviews

Write a Review

Business Management Questions & Answers

  Effective observation and listening

What effective listening behaviors might have been used by the communicators to overcome or even avoid the obstacles?

  Sustainable development and the environment

Sustainable Development and the Environment

  Why is management control important to financial planning

Why is management control important to financial planning and what are the dangers of not incorporating management control into the financial plan? Provide an example to support your answer.

  Description of organizational change1-why is organizational

description of organizational change1-why is organizational change so difficult?2-what are the similarities and

  Explain a military style of management in a civilian

explain a military style of management in a civilian environmentgiven a retired military officer in a civilian

  Scale of entrepreneurial activity in new zealand

Conduct secondary research on the current size and scale of entrepreneurial activity in New Zealand and Explain briefly how government laws & regulations and cultural characteristics would be impacting on Heinz's operations

  Describe the housing bubble however it also explain the bust

It describe the housing bubble however it also explain the bust. As he notices rational individuals turn into excessively pessimistic as they see others bidding down home prices to abnormally low levels. Do you agree with Shiller?

  Explain cemex''s operating performance

From the financial information given in the case, how would you describe CEMEX's operating performance? What problems with CEMEX's acquisition stategy (implementation),

  Identifying specific generations in the workplace

Show the impact of these multigenerational differences on productivity in the workplace and how management can motivate all workers?

  A channel of distribution and physical distribution

1. Explain the difference between a channel of distribution and physical distribution. 2. Why is price so difficult for marketers to control? What factors must they consider in setting prices? 3. What is the purpose of a mission statement? What a..

  Difference between health care and operations management

Difference between health care and operations management - Describe the difference between health care and manufacturing operations management.

  Question about riordan manufacturing

The influence of the organizations financial condition on the total compensation and question about Riordan Manufacturing

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