What should be the required rate of return

Assignment Help Financial Accounting
Reference no: EM132841620

Question - If a security is with beta of of 1.5, the risk-free rate is 10%, and the expected return on the market portfolio is 16%, what should be the required rate of return using the Capital Asset Pricing Model (CAPM)?

A. 10.09%

B. 16%

C. 19%

D. None of the above

Reference no: EM132841620

Questions Cloud

Evaluate the goals of the abolitionist movement : Evaluate the goals, methods, and leaders of the abolitionist movement. Which of the methods were most effective and what progress was made up.
What are some contemporary examples that utilize realism : Idealism refers to behavior or thought that is based on a conception of things as they should be or as one would like them to be. Realism is sometimes.
How did the arrival of ghanaian leaders to the united states : How did the arrival of Ghanaian leaders to the United States in 1957 influence the pro-civil rights newspapers' discussion of segregation and Jim Crow laws?
Current demographics for verizon communications inc : What are the current demographics for Verizon Communications Inc.? (How did the company handle it?
What should be the required rate of return : The expected return on the market portfolio is 16%, what should be the required rate of return using the Capital Asset Pricing Model (CAPM)
Demonstrate that you understand the change process : Curriculum Implementation Assignment: You area unit leader and your organization has just developed or purchased a computer software program and a complete lab.
Regular part of organizational life : How do you think planning in today's organizations compares to planning 25 years ago?
What ways the united states was an unfinished nation : Discuss in what ways the United States was an "unfinished nation," and how the accomplishments of the Civil Rights era completed the process.
Describe issue of cultural or intercultural nature : You may pick any issue of cultural/intercultural nature: e.g. segregation and discrimination against a certain micorcultural group in your dominant culture.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Which statements is true if a seller realized in gain

Which statements is TRUE if a seller realized $21,000 in gain on the original sale of their principal residence, and repossessed and resold property 14 months

  Create a crosstab query using the query wizard

Create a crosstab query using the Query Wizard. Click data base tool, then select Crosstab Query Wizard. Click the creat tab, Then select Query Disgn

  Calculate tax credit on disposal

Calculate tax credit on disposal. Reversing Rapids Co. purchases an asset for $137,154. This asset qualifies as a five-year recovery asset under MACRS.

  The payback period for this investment

(Ignore income taxes in this problem.) The Zinger Corporation is considering an investment that has the following data: Year 1 Year 2 Year 3 Year 4 Year 5 Investment $17,500 $4,900 Cash inflow $3,900 $3,900 $10,000 $5,900 $5,900 Cash inflows occur ev..

  How long will take to pay off the debt

How long will it take you to pay off this debt assuming that you do not charge anything else and make regular monthly payments of $60?

  Prepare journal entries in the accounts of abc truck builder

Prepare journal entries for 2011 in the accounts of ABC Truck Builders on November 30, to record receipt of the first $1,400 monthly payment.

  Conduct feasibility study on potential land purchase

Assume a land development company hired an engineer and architecture firm to conduct a feasibility study on a potential land purchase. The report indicated that the land was suitable for development. What are some of the risks of things that could go..

  How much money would need in the bank today

How much money would we need in the bank today in order to pay for the second location without having to earn additional money?

  Complete the following tasks1 prepare all journal entries

complete the following tasks1. prepare all journal entries on wordexcel document.2. post all journal entries to the

  Calculate cost of thermostats in finished goods inventory

Aker Company produces refrigerators. Each refrigerator contains a small thermostat that costs $7. During September,  Calculate the cost of thermostats in finished goods inventory at September 30. Do not use decimals in your answer.

  Direct materials budget for the seasoningone quarter gram

direct materials budget for the seasoning.one quarter gram of a rare seasoning is required for each bottle of dipping

  Regulations encouraging solar-powered engines postponed

The risk assessment should be presented as a memo to file. The memo should identify the users of the financial statement and their reliance on the financial statements, the likelihood of the client having financial difficulties, and the integrity of ..

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