What must the expected return on market

Assignment Help Financial Management

Reference no: EM13885388

A stock has an expected return of 10.3 percent, its beta is 1.02, and the risk-free rate is 6.35 percent.

Required:

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

Expected return %

Reference no: EM13885388

Questions Cloud

What financial principal does this illustrate : What is the current price for a General Electric 6% corporate bond with 10 years to maturity if the market rate of interest for similar bonds is 7%? What would the current price be if the market rate of interest drops to 4%? What financial principal ..

How much would GDP increase : Suppose Apple produces 10,000 MacBooks in December of 2013 with an estimated market value of 2,000 each. None of those are sold until sometime in the spring of 2014. How much would GDP increase in 2014?

Obtain the true value of gross domestic product : If it could be shown that a using GDP is associated with a rising level of anxiety, tension, and conflict in the population, would you favor deducting these psychological cost to obtain the true value of gross domestic product? How would you do so? H..

Determine the expected value of the investment : An investment has the following possible outcomes based on the economy. Booming economy $ 40,000; Normal Economy $ 25,000; Recession Economy (-$ 15,000). Determine the expected value of the investment if the following probabilities are given: Booming..

What must the expected return on market : A stock has an expected return of 10.3 percent, its beta is 1.02, and the risk-free rate is 6.35 percent. What must the expected return on the market be?

Project to ensure non-negative net present value : Och, Inc., is considering a project that will result in initial after-tax cash flow of $3.5 million at the end of the first year, and these cash flows will grow at a rate of 4% per year indefinitely. What should be the initial investments of this pro..

What is the profitability index of the project : Myers Limited is considering the purchase of automated equipment that is expected to generate an NPV of $632,500. The cost of the equipment is $2,375,500. What is the profitability index of the project?

Implement cash management systems : If a company can implement cash management systems and save three days by reducing remittance time and one day by increasing disbursement time based on $2,000,000 in average daily remittances and $2,500,000 in average daily disbursements and their re..

Controlling interest in instapower : On February 18, 2014, Q-Car Corporation announced its plan to acquire 90% of the outstanding 1,000,000 shares InstaPower Corporation’s common stock in a business combination later in the year following regulatory approval. What is the total considera..

User Account

All Pages