What must the expected return on this stock be

Assignment Help Financial Management

Reference no: EM13909185

A stock has a beta of 0.9, the expected return on the market is 16 percent, and the risk-free rate is 8.8 percent. What must the expected return on this stock be?

Reference no: EM13909185

Questions Cloud

For which of the investments is the date of maturity : For which of the following investments is the date of maturity known?

How much will city of newport beach have to compensate chase : The Court should permit Gooden to breach the contract because he did not have full information when he made the agreement - change if Williams was not a professor of geology, but, in fact, a professor of geometry who knew little of minerals and s..

Operating leverage at accounting break-even level of output : Consider a four-year project with the following information: initial fixed asset investment = $560,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $28; What is the degree of operating leverage at the accou..

Statements regarding mortgage pass-through bonds : Which of the following statements regarding mortgage pass-through bonds (MPTBs) is FALSE?

What must the expected return on this stock be : A stock has a beta of 0.9, the expected return on the market is 16 percent, and the risk-free rate is 8.8 percent. What must the expected return on this stock be?

Define the term business process reengineering : Define and contrast the following pairs of terms: dot-com and bricks-and-clicks; intranet and extranet; B2C and B2B. Define the term business process reengineering, and describe its importance to information systems work.

Debt obligation of the issuer : Which of the following investments in NOT a debt obligation of the issuer?

What should price per share be for firms common stock : Suppose a firm is anticipated to have a Net Income per Share of $25 next year and is expected to pay only 20% of (total) Net Income in Dividends. Also, the firm faces an unusually high cost of common stock of 22% and has an unusually low dividend gro..

What is the ytm and current yield : Rolling Company bonds have a coupon rate of 9.40 percent, 19 years to maturity, and a current price of $1,256. What is the YTM? The current yield?

User Account

All Pages