What must expected return on market be

Assignment Help Financial Management
Reference no: EM131343320

A stock has an expected return of 11.5 percent, its beta is .90, and the risk-free rate is 5.75 percent.

What must the expected return on the market be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM131343320

Questions Cloud

What conclusions can be drawn about the policy problems : PAD 520- Does the line graph flatten out? (b) If so, after how many stakeholders? (c) What conclusions can be drawn about the policy problems in the issue area? (Note: Compare your work with Case Study 3.1 at the end of the chapter.)
Chemical formula and the condensed formula : What is the difference between the chemical formula and the condensed formula of organic compounds? What information does each provide?
What is porters five competitive forces model : What is Porters Five Competitive Forces Model? How has IT and the Internet changed the balance of power among these competitive forces? Using an industry of your choice, give examples of companies that represent the five competitive forces?
Calculate the average atomic mass of carbon : Carbon has 3 natural occurring isotopes: Carbon-12 has a mass of 12.009 with a percent abundance of 98.85 %  Carbon-13 has a mass of 13.003 with a percent abundance of 1.07 % , and Carbon-14 has a mass of 0.8 %. Calculate the average atomic mass o..
What must expected return on market be : A stock has an expected return of 11.5 percent, its beta is .90, and the risk-free rate is 5.75 percent. What must the expected return on the market be?
Explain role locard principle plays in criminal profilng : Explain the role Locard's Principle plays in criminal profiling. Explain in detail how the technology of Geographical Profiling as evolved over the past 20 years and how it is being used successfully today by law enforcement
How can you interpret number related to company growth : The Clorox's valuation [V(0)]is 68.82. What is this mean to the company? How can you interpret this number related to company's growth?
Why would this implementation be better than original one : If there were more passes than fails, why would this implementation be better than the original one?
Compare with current fossil fuel emission : The current population of earth is about 6.5 billion people .Each person on average exhales about 1 kg of CO2 per day. How does this compare with current fossil fuel emission? This amount is not included in inventories of CO2 emissions. Why?

Reviews

Write a Review

Financial Management Questions & Answers

  What two personal financial statements are most important

What two personal financial statements are most important to personal financial planning?- Define cash inflows and cash outflows and identify some sources of each. How are net cash flows determined?

  What is your percentage return on investment for the year

You purchased 200 shares of preferred stock on January 1, 2002 for $42.27 per share. The stock pays an annual dividend of $5 per share. On December 31, 2002 the market price is $43.88 per share. What is your percentage return on investment for the ye..

  What exchange rate risk does alcoa face in this transaction

What exchange-rate risk does Alcoa face in this transaction?- What alternatives does Alcoa have to hedge this exchange-rate risk?

  What nominal annual rate will they charge their customers

Bank 1 lends funds at a nominal rate of 9% with payments to be made semiannually. Bank 2 requires payments to be made quarterly. If Bank 2 would like to charge the same effective annual rate as Bank 1, what nominal annual rate will they charge their ..

  What is the discounted payback period of the proposed

Swerling Company is considering a project with the following cash flows. What is the payback period of the proposed Swerling Company project? What is the net present value of the proposed Swerling Company project if the discount rate is 6%?  What is ..

  Compute the discounted payback statistic for project

Compute the discounted payback statistic for Project D if the appropriate cost of capital is 10 percent and the maximum allowable discounted payback is four years.

  Create portfolio equally as risky as the market

You want to create a portfolio equally as risky as the market, and you have $1,900,000 to invest.

  Planning to save for retirement

You are planning to save for retirement over the next 30 years. To do this, you will invest $700 a month in a stock account and $300 a month in a bond account. The return of the stock account is expected to be 11% APR compounded monthly, and the bond..

  The value chain configuration is increasingly inadequate

You are familiar with the value chain as a vehicle for describing organizational business processes and the relationships between these processes (more on this later in the course). However, the "value chain" configuration is increasingly inadequate ..

  What is the arbitrage price of bond

Assume that there are two three-year bonds with face values equaling $1000. The coupon rate of bond A is .05 and .08 for bond B. A third bond C also exists, with a maturity of two years. Bond C has a face value of $1000; it has a coupon rate of 11%. ..

  Equal year-end deposits in a savings account

You need to accumulate $86,143 for your son's education. you have decided to place equal year-end deposits in a savings account for the next 16 years. The savings account pays 3.62 % per year compounded annually.

  What would be the bonds current yield

Suppose that you read in The Wall Street Journal that a bond has a coupon rate of 9 percent, a price of 71.375% (of face value) , and pays interest annually. Rounded to the nearest whole percent, what would be the bond’s “current” yield? A 12-year bo..

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