What must the expected return on this stock be

Assignment Help Financial Management
Reference no: EM13941291

A stock has a beta of 1.10, the expected return on the market is 12 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return % =

Reference no: EM13941291

Questions Cloud

Theories of convergence-divergence and crossvergence : Explain the theories of convergence, divergence and crossvergence. Are these three theories mutually exclusive? Or can we have convergence, divergence and crossvergence all happening in different parts of the environment at the same time?
Firm evaluates all of its projects by applying the irr rule : A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: If the required return is 15 percent, what is the IRR for this project?
Describe the sample size appropriate for the population : Explain which method or instrument you would use to gather data. Describe the sample size appropriate for the population and how you would select participants. Provide a rationale for your choices, and explain how you can ensure high standard of reli..
What is the approximate annual rate of increase for income : Using the rule of 72 answers the following questions. a. In how many years will it take income to double if it is rising each year by 1 percent? 2 percent? 4 percent? b. A country’s income begins at $10,000 and rises to $20,000 in 18 years. What is t..
What must the expected return on this stock be : A stock has a beta of 1.10, the expected return on the market is 12 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be?
What is one factor that contributed to egypt expansion : What are two factors (environmental or geographic) that contributed the greatest to the development and expansion of the US? What is one factor that contributed to Egypt's expansion and development?
What is the banks cost of preferred stock : Holdup Bank has an issue of preferred stock with a $5.85 stated dividend that just sold for $95 per share. What is the bank’s cost of preferred stock?
Retailer future marketing direction : Choose a retailer and conduct a full portfolio analysis on their current and future situation using an appropriate business tool. You should also complete an external audit and consider the implications this may have on the retailer's future marke..
Cash flow amount to use as initial investment in fixed asset : Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $5.3 million in anticipation of using it as a warehouse and distribution site, but the comp..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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