What should be the rate of return in on xyz

Assignment Help Financial Accounting

Reference no: EM133376522

Question: You are trying to calculate the rate of return on a share of stock. Here is the data you have complied: the beta of the overall stock market = 1.0; the beta on this particular stock is 1.50; the prime rate of interest is 7%; LIBOR is 6.5%; the rate on 3 month T-Bills is 3% and on 10 year T-Noted is 3.5%; the rate of return on the stock market is 10%. Again, using CAPM, what should be the rate of return in on XYZ?

Reference no: EM133376522

Questions Cloud

Examine the reasons why the invasion of poland in 1939 : Examine the reasons why the invasion of Poland in 1939 developed into a major European war by 1941. One of the reasonings was listed above, may I get a brief

Why analyzing the supplier influence is important : explain why analyzing the Supplier's Influence is important for an organization. Be sure your answer includes the various ways the Supplier's Influence

How can reflection to building multicultural competence : In order to build multicultural competence, we must reflect on our experiences in the larger social context.

Select two topics that thomas moro solves in utopia : Select two topics that Thomas moro solves in Utopia and What is Thomas moro perspective in agriculture

What should be the rate of return in on xyz : You are trying to calculate the rate of return on a share of stock. Here is the data you have complied: the beta of the overall stock market = 1.0

Compare and contrast the place and economic role : Compare and contrast the place and economic role of the middle class and plebeian women in nineteenth-century Britain. What were the modes of the middle class

How large is larry monthly mortgage payment : Larry will pay an equal amount each month, starting one month from now, for 30 years. His final payment will be exactly 30 years (or 360 months) from now.

Explain how oil-painting technique allowed fifteenth-century : Explain how oil-painting technique allowed fifteenth-century Flemish painters to achieve unprecedented descriptive effects in their work

What is the purpose of closing entries : When discussing a financial report in a roleplay (accountant to director), how would you explain: overall profit/loss, the effect accrual accounting has

User Account

All Pages