What must the expected return on the market be

Assignment Help Financial Management
Reference no: EM13911207

A stock has an expected return of 11.8 percent, its beta is 0.93, and the risk-free rate is 5.90 percent. What must the expected return on the market be?

Reference no: EM13911207

Questions Cloud

Used in discounting this purchase transaction : Dubois Inc. has completed the purchase of new Dell computers. The fair value of the equipment is $824,400. The purchase agreement specifies an immediate down payment of $227,800 and semiannual payments of $69,940 beginning at the end of 6 months for ..
Describe the functions of a manufacturing mis : Describe the functions of a manufacturing MIS.
Contrast job order costing and process costing : Compare and contrast job order costing and process costing. What types are products are typically accounting for using job order costing and process costing?
What is the difference between intelligence and design : What is the difference between intelligence and design in decision making?
What must the expected return on the market be : A stock has an expected return of 11.8 percent, its beta is 0.93, and the risk-free rate is 5.90 percent. What must the expected return on the market be?
How does an executive support system differ from a decision : How does an executive support system differ from a decision support system?
What is the catheterization labs profit : A new cardiac catheterization lab was constructed at Have a Heart Hospital. The investment for the lab was $950,000 in equipment costs and $50,000 in renovation costs. A desired return on investment is 12%. What is the catheterization labs profit?
Polaris must assign overhead costs to its products : Polaris must assign overhead costs to its products.
State the objective of a group support system : State the objective of a group support system (GSS) and identify three characteristics that distinguish it from a DSS.

Reviews

Write a Review

Financial Management Questions & Answers

  The first putting green championship was held

In 1895, the first Putting Green Championship was held. The winner’s price money was $240. In 2014, the winner’s check was $1,400,000. What was the percentage in cream per year in the winner's check over this period?

  What is the average total profit generated for the month

Papier Nouveau, a distributor of commercial printing supplies. As the Director of HR for Papier Nouveau, you are responsible for calculating monthly incentives.

  Firms primary long-term financial objective

What should be a firm's primary long-term financial objective?

  Make financial sense-compact fluroscent lamps

Compact fluroscent lamps (CFLs) have become popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.50 and lasts 1,000 hours. A Kilowatt-hour of electricity costs $.101, which is about nati..

  Considering four-year project that has an initial outlay

Acme, Inc. is considering a four-year project that has an initial outlay or cost of $100,000. The respective future cash inflows from its project for years 1, 2, 3 and 4 are: $50,000, $40,000, $30,000 and $20,000. Will it accept the project if its pa..

  Nominal rate of return-what is the inflation rate

If your nominal rate of return is 14.38 percent and your real rate of return is 4.97 percent, what is the inflation rate?

  Include the pepsi-cola bottling group in the portfolio

Perform some research on the web, and outline the evolution of PepsiCo from 1970 forward. How has their portfolio changed over the years (include the Pepsi-Cola Bottling Group in the portfolio)?

  Determine the international fisher effect

With a minimal amount of research, you determine the following information regarding the U.S. dollar and the British Pound: United States Great Britain. With the above information, determine the following: Future $ spot rate in 6 months of the dollar..

  The value of any asset

The value of any asset is the ________.

  What must be his coefficient of risk aversion

Suppose we are told that an investor invests optimally and that he puts 20% in the Market portfolio and 80% in the Risk Free Portfolio. What must be his coefficient of risk aversion?

  What was the holding period return for the stock

A stock has had returns of 16.42 percent, 12.14 percent, 5.64 percent, 26.50 percent, and ?13.34 percent over the past five years, respectively. What was the holding period return for the stock?

  The objectivespurpose of the research paper project are to

the objectivespurpose of the research paper project are to enable you to do a comprehensive financial analysis of a

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