What is the security expected alpha

Assignment Help Financial Management

Reference no: EM132045586

You've analyzed IBM's stock and expect it to deliver a return of 8% over the next year. The stock has a beta of 0.6. The risk-free rate is 2.5% and the expected market risk premium is 4.5%.

What is the security's expected alpha?

What is the security's expected alpha according to the CAPM?

Reference no: EM132045586

Questions Cloud

What is alsop corporation charitable deduction : What is Alsop Corporation's charitable deduction for 2014? What happens to the portion that is not deducible, if any

Estimate us steel weighted average cost of capital : Using these rounded answers (two estimates above), estimate US Steel’s weighted average cost of capital.

Maximise workplace outcomes : What can a team member do to encourage others to develop their own emotional intelligence to maximise workplace outcomes and build productive relationships?

What is the impact on the firm interest expense after taxes : If the $ appreciates to £0.85/$, what is the impact on the firm's interest expense after taxes?

What is the security expected alpha : What is the security's expected alpha? What is the security's expected alpha according to the CAPM?

How outcome from climate change on public health will differ : Examine how the outcomes from climate change on public health will differ between developed and developing countries.

How much has the dollar tax shield : If the dollar appreciates to £0.85/$, how much has the dollar tax shield (i.e., the tax savings because of depreciation expense) changed?

Company capital structure weights on book value basis : Bonaime, Inc., has 6.1 million shares of common stock outstanding. What are the company’s capital structure weights on a book value basis?

Define the research design strategy you plan to use : Define the research design strategy you plan to use for your study and justify why it is the best choice for your research design.

User Account

All Pages