Beta of stock x, Financial Accounting

Assignment Help:

You have observed the following returns over time:

Year

Stock X

Stock Y

Market

2006

13%

13%

13%

2007

21

6

12

2008

-13

-7

-12

2009

5

1

1

2010

24

9

15

Suppose that the risk-free rate is 3% and the market risk premium is 15%

  1. What is the beta of Stock X?


    What is the beta of Stock Y?

       b. What is the needed rate of return on Stock X?


            What is the needed rate of return on Stock Y?

 


Related Discussions:- Beta of stock x

Default risk premium on the corporate bond, a) A Treasury bond that matures...

a) A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 8%. Suppose that the liquidity premium on the corporate bond is 0.4%. What is

Explain briefly two methods of calculating depreciation, QUESTION 1: Th...

QUESTION 1: The Alpha Company Ltd was registered with Nominal Capital of 60,000 Equity shares of Rs.10 each. The following were the ledger balances on 31st March 2011.

Estimate the systematic risk of the new investment, Q. Estimate the systema...

Q. Estimate the systematic risk of the new investment? The beta of the comparator company will be utilized to estimate the systematic risk of the new investment. No un-gearing

Khyber bank, how we write a literature review

how we write a literature review

Maximize revenues from sales, You are a manager at the DaimlerChrysler. Dai...

You are a manager at the DaimlerChrysler. Daimler-Chrysler has lost money on the Smart car since the first model rolled off the assembly line in 1998. By bringing its little car in

Promissory note - evidence of a debt, Promissory Note - Evidence of a DEBT ...

Promissory Note - Evidence of a DEBT with specific amount due and interest rate. Note may specify a maturity date or it may be payable on demand. Promissory note may or may not acc

Investments under the trustee act-trust laws and accounts, Investments unde...

Investments under the Trustee Act The act defines the categories of investment as follows:         1. Fixed interest securities are: Securities which under their te

Explain the favorable variance, Question: The manager of Ben and Jerry's Ic...

Question: The manager of Ben and Jerry's Ice Cream is told that the direct material quantity variance for cherries in Cherries Garcia Ice cream is favorable. What could explain thi

605, I am working on the comprehensive probelm and I can not figure out the...

I am working on the comprehensive probelm and I can not figure out the trial balance. Where am I going wrong?

Write Your Message!

Captcha
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