What must the expected return on this stock be

Assignment Help Finance Basics
Reference no: EM13272992

A stock has a beta of 1.7, the expected return on the market is 11 percent, and the risk-free rate is 4.4 percent. What must the expected return on this stock be? HINT: Use the Security Market Line.

Reference no: EM13272992

Questions Cloud

Complete a project based on the national health service : Understand contemporary theories, processes, and methods of managing organisations and apply contemporary theories and methods to organise and manage human resources.
What is indifference level of earnings interest and taxes : What is the indifference level of earnings before interest and taxes? Should Stern's Stews change its capital structure? Why?
What is the weighted average flotation cost : What is the weighted average flotation cost if the company finances new assets using new debt, new shares of preferred stock, and Retained Earnings?
What is the total market value of debt : Jiminy's Cricket Farm issued a 30-year, 7.6 percent semiannual bond 5 years ago. The bond currently sells for 84.5 percent of its face value. The book value of this debt issue is $109 million.
What must the expected return on this stock be : A stock has a beta of 1.7, the expected return on the market is 11 percent, and the risk-free rate is 4.4 percent. What must the expected return on this stock be? HINT: Use the Security Market Line.
Find where the magnetic field is zero : two parrel,very long straight wires separated by 10 cm are carrying 2.0 A and 4.0 A in opposite direction. where the magnetic field is Zero
What is the portfolio weight of stock a : A portfolio has 70 shares of Stock A that sell for $39 per share and 110 shares of Stock B that sell for $33 per share.
Find the frequency of the radiation of maximum intensity : The walls of a blackbody cavity are at a temperature of 27 degrees C. find the frequency of the radiation of maximum intensity
How far is its image from the mirror : A 12mm-high object is 10cm from a convex mirror with focal length 17cm. How far is its image from the mirror

Reviews

Write a Review

Finance Basics Questions & Answers

  Foundations of financial management edition 14

Foundations of Financial Management Edition 14

  What is the amount to use as the annual sales

What is the amount to use as the annual sales figure when evaluating this project?

  Which bond is subject to the greatest interest risk rate

A bond trader purchased each of the following bonds at a yield to maturity of 7 percent. Immediately after she purchased the bonds, interest rates increased to 7.5 percent. Which is the percentage change in the price of each bond after the increas..

  Calculate the annual loan payment

Loan amortization schedule Joan Messineo borrowed $15,000 at a 14 percent yearly rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments.

  Question on time series forecasting

The following table describes the past two years of quarterly sales information. Suppose that there're both trend and seasonal factors and that the seasonal cycle is one year. Use time series decomposition to forecast quarterly sales for the next ..

  Compute the anticipated value of the dividends

Hunter Petroleum Company paid a $2 dividend last year. The dividend is expected to increase at a constant rate of 5% over the next 3-years. The required rate of return is 12%

  Compute the standard deviation of the returns

Suppose the returns for Stock A for last six years was 4%, 7%, 8%, -2%, 9%, and 7%.

  Creating balance sheet using mark-to-market method

Applying the Mark-to-market method, what will Novi Company show on its balance sheet at the end of 2006 to reflect its investment in Troy Company?

  Low risk projects and high risk projects

The Nunnally Corporation has equal amounts of low-risk, average-risk, and high-risk projects. Nunnally estimates that its overall WACC is 12 percent. The CFO believes that this is the correct WACC for the Corporation's average-risk projects,

  Calculate the breakeven index price for a strategy

The $850 strike put premium is $25.45 and the $850 strike call is selling for $30.51. Calculate the breakeven index price for a strategy employing a short call and long put that expires in 6 months. Interest rates are 0.5% per month.

  Determine the contribution per unit

After spending $300,000 for research and development, chemists at Diversified Citrus Industries have developed a breakfast drink. The drink, called Zap, will provide the customer with twice the value of Vitamin C currently available in breakfast drin..

  Earmark funding and appropriations

Does The American Red Cross receive or has ever received earmark grants?

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