What is the risk-free rate of return

Assignment Help Financial Management
Reference no: EM13730815

The expected return on HiLo stock is 14.60 percent while the expected return on the market is 13.4 percent. The beta of HiLo is 1.19. What is the risk-free rate of return?

Reference no: EM13730815

Questions Cloud

Compare the present value of economic profit : 1. P15(d): Compare the present value of economic profit in each of the next three years and the loss of $50,000 in the third year using 15% as the discount rate.2. The spreadsheet problem (b): Calculate a mean, .... to statistically describe the data..
Objectives for training program : Assess the Draft Training Proposal and peer feedback you received in Week Two, and finalize the topic and objectives for your training program. In a 20- to 25-slide PowerPoint presentation, not including the title and references slides:
President of the organization : In Week One, you will choose a generic organization (manufacturing plant, hospital, etc.).  Assume that you are a hired consultant for this organization.  You have been asked by the president of the organization to prepare a background paper on th..
Bill plans to fund his individual retirement account : Bill plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 20 years. If Bill can earn 12 percent on his contributions, how much will he have at the end of the twentieth year..
What is the risk-free rate of return : The expected return on HiLo stock is 14.60 percent while the expected return on the market is 13.4 percent. The beta of HiLo is 1.19. What is the risk-free rate of return?
Organization total reward system : Explain how you would construct your organization's total reward system (compensation and benefits) to address factors such as
What is the value of this stock today : The Farmer's Market recently announced that it will pay its first annual dividend two years from today. The first dividend will be $0.50 a share with that amount doubling each year for the following two years. After that, the dividend is expected to ..
Determine which markets to target short versus long term : Apply SWOT, Porter's Five Forces, or the BCG Matrix to analyze Kraft's strategic plan to expand into international markets. How would you determine which markets to target short versus long term
Workplace situations involving religion : In this module you have learned a lot about religion, and have attempted to respond to some workplace situations involving religion. It is important to ensure that managers are aware of what the definition of "religion" is and what it means in the..

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the magnitude of year investment that an investor

Reclamation costs on a project are expected to be incurred over a 30 year period from 27 to 56 years in the future from now. Reclamation costs are estimated to escalate 7% per year in the future.

  What is the present value of the bond show your work

After six months go by, you receive the first interest payment of $300. The annual market interset rate has declined to 5 percent and you decide to sell the bond. What is the bond's present value when you sell it? show your work.

  Rate for four-year-maturity treasury securities

Suppose that the current one-year rate (one-year spot rate) and expected one-year Tbill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows:

  Question 1a stock price is currently 100 it is known that

question 1a stock price is currently 100. it is known that in one year it will be either 146 or 80. the risk-free rate

  Company will increase its dividend

Holyrood Co. just paid a dividend of $2.10 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent divi..

  Calculate the internal rate of return and profibility index

Fijisawa inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. the initial outlay would be $2,010,000 and the project would generate cash flows of $460,000 per year for..

  What is the future value-compounded quarterly

What is the future value of $1,400, placed in a saving account for four years if the account pays 0.10, compounded quarterly?

  Difference between normal goods and inferior goods

Discuss the difference between substitutes and complements and the difference between normal goods and inferior goods. How do managers and business owners use these concepts? Please provide real world examples.

  Interest or discount rate with interest compounded annually

What is the present value of $7,800 received 13 years from now using a 16% interest or discount rate, with interest compounded annually?

  What will be the immediate effect on the trade balance

The table below gives information on foreign trade for a country. a. Using the initial information, what is the country’s trade deficit? b. If the government undertakes policies to depreciate the currency 18%, what will be the immediate effect on the..

  After-tax cost of debt problem

The Heuser Company's currently outstanding bonds have a 9% coupon and a 14% yield to maturity. Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 40%, what is Heuser's after-tax..

  Evaluate the fixed overhead volume variance

calculate the Variable overhead efficiency variance and fixed overhead volume variance and overhead spending variance

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