What is this stock projected return

Assignment Help Financial Management
Reference no: EM132002263

What is this stock's projected return if you utilize the Fama-French three-factor model? The risk-free rate is 4%, the market return is 9%, the return on the SMB portfolio is 2.8% and the return on the HML portfolio is 4.2%. If ai = 0, bi = 1.1, ci = -.3, and di = 1.5.

Reference no: EM132002263

Questions Cloud

Compliance with billing and coding policies : Which hospital department is responsible for ensuring compliance with billing and coding policies?
What is the required rate of return on stock : The risk-free rate is 2% and the expected return on the market is 8%. What is the required rate of return on Nike's stock?
What are the different types of strategic alliances : What are the different types of strategic alliances used in different circumstances in strategic management?
Describe the typical assessment techniques : Introduce the topic, describing the offender population and the treatment approach. Describe the typical assessment techniques used to evaluate this offender.
What is this stock projected return : What is this stock's projected return if you utilize the Fama-French three-factor model?
What are five necessary conditions for project success : What are five necessary conditions for project success. What are some project constraints that could affect project success?
How well they would protect patient data from theft : Consider the scenario that you are working as an IT Director for a hospital considering the selection of a web-based electronic health record (EHR) system.
The portfolio risky or less risky than the average : What can you say about a market risk of the portfolio above based on the beta you found - is the portfolio risky or less risky than the average?
Risk management requirements in malaysia : a) Discuss corporate governance compliances and risk management requirements in Malaysia.

Reviews

Write a Review

Financial Management Questions & Answers

  Choose a health maintenance organization

In which organization would you expect to have an easier time getting an appointment to see your doctor? Explain.

  Lend money for major commercial real estate development

You are asked to lend money for a major commercial real estate development in a foreign country. There is some talk about a further devaluation of the foreign country’s currency. What information do you need to assess the creditworthiness of this pro..

  Present value of a perpetual stream of cash flows

What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of one year and grows at a rate of 7% indefinitely?

  Accounting break-even level of sales if firm pays no taxes

What is the accounting break-even level of sales if the firm pays no taxes? What is the NPV break-even level of sales if the firm’s tax rate is 35%?

  What must risk-free rate be

A stock has an expected return of 13.2 percent, a beta of 1.40, and the return on the market is 10.10 percent. What must the risk-free rate be?

  Calculate the total fees you will pay on loan commitment

Calculate the total fees you will pay on this loan commitment.

  What is the yield to maturity for these bonds

Atlantis Fisheries issues zero coupon bonds on the market at a price of $415 per bond. Each bond has a face value of $1,000 payable at maturity in 17 years. What is the yield to maturity for these bonds?

  Compare and contrast commercial paper and treasury bills

Compare and contrast commercial paper and Treasury bills. Which would typically offer a higher interest rate? Why?

  Trustworthy and that both investments carry same risk

Assume your brother is trustworthy and that both investments carry the same risk. Which investment option will you choose and why?

  What is your company weighted average flotation cost

Suppose your company needs $10 million to build a new assembly line. Your target debt−equity ratio is .4. The flotation cost for new equity is 10 percent, but the flotation cost for debt is only 7 percent. What is your company's weighted average flot..

  Why do some investors continue to invest overseas

IFE. Shouldn't the IFE discourage investors from attempting to capitalize on higher foreign interest rates? Why do some investors continue to invest overseas, even when they have no other transactions overseas?

  Calculate the value of the delayed stream

Calculate the current market value of the cash áow stream. Calculate the value of the delayed stream.

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