What must the expected return on this stock be

Assignment Help Finance Basics
Reference no: EM13280002

A stock has a beta of 1.55, the expected return on the market is 12 percent, and the risk-free rate is 4.8 percent. What must the expected return on this stock be?

15.16%
16.6%
15.96%
23.4%
16.76%

 

Reference no: EM13280002

Questions Cloud

Develop symptoms of the h1n1 flu : Proportional to the product of the numbers of those who have caught the disease and those who have not. How long will it take for 60,000 people to develop symptoms of the H1N1 FLU ?
Determine regions in the s-plane resulting from mappings : Consider the mapping of the unit circle (i.e., z = 1ejω, -π ≤ ω
Determine the angular momentum of the sphere : A hollow, thin-walled sphere of mass 12.0kg and diameter 47.0cm is rotating about an axle through its center. find the angular momentum of the sphere
National level influences in negotiations : what balance should exist between local level and national level influences in negotiations? should this issue differ by bargaining issue?
What must the expected return on this stock be : A stock has a beta of 1.55, the expected return on the market is 12 percent, and the risk-free rate is 4.8 percent. What must the expected return on this stock be?
Find the mechanical torque loss and the load torque in test2 : Given: A permanent magnet DC motor with kv = 0.7 v-s is tested under the following two conditions: Test 1: Apply 120 V; motor unloaded, Ia=2A and w=160 rad/s Test 2: Apply 120 V, increase load torque until Ia=6A and w=137.1 rad/s
Describe the calculation of the economic order quantity : Describe the calculation of the Economic Order Quantity in terms of the fundamental objective that is being achieved through the derivation of the formula for EOQ.
Find the translational speed of the object : A small object with mass 0.200 kg moves with constant speed in a vertical circle of radius 0.500 m. What is the translational speed of the object
Determine mechanical power developed by the unloaded motor : Given: A permanent magnet DC motor has a machine constant, Kv = 0.5 V-s. The no-load torque is 1.0 Nm. Assume mechanical torque loss is a constant. Determine the mechanical power developed by the unloaded motor at 1250 rpm.

Reviews

Write a Review

Finance Basics Questions & Answers

  Is there an arbitrage opportunity here

An 8-month forward contract on a stock is currently priced at $84. The stock currently sells for $80. Assume that the risk-free rate of interest (with continuous compounding) is 10% per annum. Assume that dividends of $0.90 per share are expected ..

  What is the standard deviation of the complete portfolio

Consider the following capital market: a risk-free asset yielding 1.75% per year and a mutual fund consisting of 65% stocks and 35% bonds. The expected return on stocks is 12.50% per year and the expected return on bonds is 3.25% per year. The standa..

  What annual rate of return would have to have been earned

What annual rate of return would have to have been earned on the account over an 18-year period?

  Calculate the amount of capital funding

Calculate the amount of capital funding The Fitness Studio raised through this debt offering.

  Compute the value of bonds

Terminator Bug Corporation bonds have a 14 percent coupon rate. Interest is paid semiannually. The bonds have a par value of $1,000 and will mature 10 years from now.

  Which is the better investment based on risk aversion andwhy

Security A will yield a 6% return in one year. Security B will either yield a 3% return or a 9% return in one year with equal probability. Which is the better investment based on risk aversion and why?

  Federal income tax perspective

Lou Hinton's saving account showed the following activity for the month of June, many financial planners recommend that you hold emergency reserve assets equal to;

  The big mac index

In brief describe the history and purpose of the big Mac Index. where is it most expensive to buy big Mac? where is it least expensive to buy a big Mac?

  Calculation of npv

Ang Electronics, Inc., has created a new DVDR. If the DVDR is successful, the present value of the payoff [when the product is brought to market] is $21.2 million.

  Determine the market potential for a product

Determine the market potential for a product that has 50 million prospective buyers who purchase an average of 3 per year and price averages $25. How many units must a company sell if it desires a 10 percent share of this market?

  What is the true initial cost figure the company should use

What is the true initial cost figure the company should use when evaluating its project?

  Before-tax rate domestic bond pay to give after-tax return

If 9% after-tax is investor's required return, what before-tax rate would domestic bond require to pay to give the required after-tax return?

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