User Account

All Pages

What is united healthcare corporate beta

Assignment Help Financial Accounting
Reference no: EM132954768

Question - Suppose that you are an investor and you currently hold a well-diversified portfolio of stocks. Suppose you are considering in investing in United Healthcare. United Healthcare's stand-alone risk is s = 0.05 and the correlation coefficient between United and the well-diversified portfolio is r=0.5. The well-diversified portfolio's average rate of return is 8% at it stand-alone risk is s = 0.02 (with r=1). The riskless rate of return is 2%.

a. What is United Healthcare's corporate beta? Interpret your result.

b. According to the CAPM model, what is the required rate of return for United Healthcare? Interpret your result.

Reference no: EM132954768

Questions Cloud

Assess the essential impact of job satisfaction : Assess the essential impact of job satisfaction and motivation in the workplace.
What is rate variance for direct manufacturing labour : Actual direct manufacturing labour was $9,240 with an actual labour, What is the Rate and Efficiency variance for Direct Manufacturing Labour?
Explain good communication and people skills : Not only is the leader to be proficient in business and industry standards, but also good communication and people skills are required.
Which company should you invest in : Company B has earnings per share of $20 and a market price of $200. Based on that information alone, which company should you invest in
What is united healthcare corporate beta : The well-diversified portfolio's average rate of return is 8% at it stand-alone risk is s = 0.02. What is United Healthcare's corporate beta
Average inventory and ordering cost per order : A large dairy firm, the Cow and Buffalo Company, buys bins every year, which it uses in the warehousing of its bottled products. A local vendor has offered the
What are the four tenets of conscious capitalism : Explain What are the four tenets of conscious capitalism and how can organizations operating by these tenets create positive change?
Pairwise demand correlation between the products : A firm is currently selling three products A,B and C with identical demand distribution (i.e., all three products have the same mean and the same standard devia
Which of the linear equations represents reciprocated cost : The owner of Hi-Tech Fiberglass Fabricators Inc., Which of the linear equations best represents the reciprocated cost of the Data Processing department?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd