What is the risk-free rate

Assignment Help Finance Basics
Reference no: EM13267700

The expected return on Mike's Seafood stock is 17.9 percent. If the expected return on the market is 13 percent and the beta for Mike's is 1.7, then what is the risk-free rate?

a.5.5%

b.4.5%

c.6.0%

d.5.0%

 

Reference no: EM13267700

Questions Cloud

Explain what is the percent yield of the iron(iii) chloride : Solid iron reacts with chlorine gas to produce iron(III) chloride. If 10.0 grams of iron reacts with excess chlorine gas and 18.5 grams of iron(III) chloride is produced, what is the percent yield of the iron(III) chloride
What is the market to book ratio of each company : In Mid 2012, the following information was true about abercrombie and fitch (ANF) and The GAP (GPS), both clothing retailers. Values(except price per share) are in millions of dollars.
Determine the total power dissipated for the three phases : Three identical impedances of (12+j15)ohms are connected in wye to a 550V balanced three phase source. Determine, (a)the magnitude of the line currents. (b) the total power dissipated for the three phases. (c)the total reactive power. (d)the power..
Describe what is the empirical formula of the compound : A certain lead-sulfur compound contains 86.59% Pb by mass and the remainder is sulfur. What is the empirical formula of the compound
What is the risk-free rate : The expected return on Mike's Seafood stock is 17.9 percent. If the expected return on the market is 13 percent and the beta for Mike's is 1.7, then what is the risk-free rate?
Defined contribution and defined benefit plans compliments : Some experts argue that defined contribution and defined benefit plans compliments each other if companies can overcome the challenges associated with both. Do you agree with these experts? Please support your position.
What is the fleas change in momentum during its jump : High-speed photos of a 220 microg flea jumping vertically indicate that the jump lasts 1.2 ms, What is the flea's change in momentum during its jump
Calculate the maximum power that can be sent : Calculate the maximum power that can be sent through an a=2cm , b=1cm air-filled waveguide at 12GHz such that dielectric breakdown does not occur. Assume that the dielectric strength of air at atmospheric pressure is 3x10^6 [V/m]
Explain how to solve on a financial calculator : Please show work and explain how to solve on a financial calculator.

Reviews

Write a Review

Finance Basics Questions & Answers

  What should the exchange rate be four years from now

Currently, you can exchange $100 for €97.25. The inflation rate in Euroland is expected to be 3.8 percent as compared to 2.1 percent in the U.S. Assuming that relative purchasing power parity exists, what should the exchange rate be four years fro..

  Explain what long position in the stock

Explain what long position in the stock is necessary to hedge a short call option when the strike price is $32 and provide the number of shares purchased as a percentage of the number of options that have been sold

  What is the current yield on pks bonds

PK Software has 8.9 percent coupon bonds on the market with 24 years to maturity. The bonds make semiannual payments and currently sell for 111.5 percent of par.

  Compute degree of combined leverage

Albatross Airline's fixed operating costs are $5.8 million, and its variable cost interest rate is 0.20. The company has $2 million in bonds outstanding with a coupon interest rate of 8%.

  Equivalent annual cost method

An eight year old storage tank has to be replaced or repaired because of severe corrosion. You have been asked to investigate three options

  Loan repayments have to be made annually

Assume (for simplicity) that loan repayments have to be made annually and you pay $2000 every year. How long will it be before you pay off your loan?

  Calculate selling price of bond

A bond matures in 15 years, par value of $1,000, and annual coupon of 5.7%. Current interest rate is 9.7%. At what price will the bond sell?

  Supernormal and negative growth

Finley Corporation is increasing quickly. Dividends are expected to increase at 25% rate for the next three years, with a growth rate falling off to a constant 6% thereafter

  Explain investment analysis in relation to harvest forest

Explain Investment analysis in relation to harvest forest and Assume all cash flows occur at the year of harvest

  Average inventory turnover

X corporation has total annual sales of $400,000 and a gross profit margin of 20 percent. Its current assets are $80,000; inventories $30,000; cash $10,000. current liabilities $60,000.

  What is jowers cost of capital

The Target capital structure for Jowers Manufacturing is 55% common stock, 14% preferred stock, and 31% debt. If the cost of common equity for the firm is 19.5%, the cost of preferred stock is 11.1% and the beforetax cost of debt is 9.9%, what is ..

  Explain decision making on the basis of the net present

Explain decision making on the basis of the net present value criterion and profitability index of a project with a net investment of $20,000

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