What would the risk-free rate have to be for the two stocks

Assignment Help Financial Management

Reference no: EM131073398

Stock Y has a beta of 1.4 and an expected return of 17.0 percent. Stock Z has a beta of 0.7 and an expected return of 10.1 percent. What would the risk-free rate have to be for the two stocks to be correctly priced? (Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131073398

Questions Cloud

Define environmental sustainability : define environmental sustainability.

Depreciation and amortization expense : Cox Corporation reported EBITDA of $22.5 million and $5.4 million of net income. The company has a $6 million interest expense and its corporate tax rate is 35%. What was Cox's depreciation and amortization expense?

Handout for a fake home appliance company : After reading 'Are You Ready for the Internet of Things' imagine that you are the Information Systems Manager responsible to create a plan for your company's Internet of Things (IoT) strategy.

The aftertax cost of debt : The aftertax cost of debt:

What would the risk-free rate have to be for the two stocks : Stock Y has a beta of 1.4 and an expected return of 17.0 percent. Stock Z has a beta of 0.7 and an expected return of 10.1 percent. What would the risk-free rate have to be for the two stocks to be correctly priced?

Express the function using only nand gates and invertors : Express the function using only NAND gates and invertors (NOT gates).

How much tax will he be required to pay on this transaction : Caffrey obtained an antique 12 years ago for $3,000,000. He recently sold it to a private collector for $17,000,000. Assuming that his personal income tax rate is 35% and the capital gains tax rate is 20%, how much tax will he be required to pay on t..

Identify the two costs that a farmer might consider : Identify the TWO costs that a farmer might consider before deciding what type of agriculture to pursue and explain how distance to market is related to land use.

What are the various forms of affirmative action : Why were early efforts to combat historic patterns of discrimination grounded on Presidential Executive Orders? What were the most important of those orders?

User Account

All Pages