Write the beta-version sml equation of the capm

Assignment Help Financial Management

Reference no: EM131622503

Assume a market return of 9% and the following information:

Security Expected Return Std Deviation

X 3.0% 0.0%

Y 12.0% 20.0%

A. Using the information listed above, write the beta-version SML equation of the CAPM.

B. Using the expected returns listed in the table above, calculate the beta for stock Y.

C. Given your answer, what can we expect about the return of stock Y if the market return is expected to fall by 2%.

Reference no: EM131622503

Questions Cloud

What would be your total real return on investment : If the inflation rate was 3.2 percent over the past year, what would be your total real return on the investment?

How much did lakisha pay for the dress : Neilson's Department Store placed a "15% off" coupon in the newspaper for an after-Thanksgiving sale. Lakisha purchased a formal dress that was marked 40%.

Description of the nature of the cultural dissonance : Provide a detailed description of the nature of the cultural dissonance you experienced. In your discussion, explore the cultural values or dimensions.

What was the final reduced price of furniture : Johnson's Furniture bought a table for $262 and marked it up 85% based on the cost. For a special promotion, it was marked down 25%.

Write the beta-version sml equation of the capm : Using the information listed above, write the beta-version SML equation of the CAPM.

Prepare journal entries to record the events : On 1 January Fairy Wren Ltd. issued $100,000, 10%, 10-year unsecured notes at face value. Prepare journal entries to record the following events

Define protected health information : Discuss the salient points of your presentation and why you feel it is important to include this information in your presentation.

Explain the difference between primary and secondary health : Explain the difference between primary and secondary health records.

Discuss the business in the united states : Discuss a recommendation for an appropriate business organizational form for the business in the United States

User Account

All Pages