Using CAPMLOral has a beta of 0.65, the expected return on the CAC 40 Index is 8

Question:

Using CAPML’Oréal has a beta of 0.65, the expected return on the CAC 40 Index is 8 per cent, and the risk-free rate is 1.5 per cent. What is the expected return of L’Oréal?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

See More Books

Question Posted: Jul 19, 2024 05:00 PM

See More Questions

Forcing someone to enter into a contract through fear or by threats is duress. For example, Luca Brasi holds a 9mm pistol to Moes head and threatens to shoot him if he does not sign a contract to l
Solve for the volume of a 1.5 x 10 cm object in units of liters. O 1.5 x 10-9L O 1.5 x 106 L O 1.5 x 10-6 L O 1.5 x 103 L O 1.5 x 10-3 L
2: Write a program that writes a series of random numbers to a file and displays all the numbers to the console. Each random 11 number should be in the range of 1 through 500. The application should l
When something burns, a. it combines with phlogiston b. it gives off phlogiston c. it combines with oxygen d. it gives off oxygen
What is horizontal analysis and how is a percentage change computed?
3) You founded your own firm two years ago. You initially contributed $150,000 of your money and, in return received 2,500,000 shares of stock. Since then, you have sold an additional 1,000,000...
P71 Authorized and available shares Aspin Corporations charter authorizes issuance of 2,000,000 shares of common stock. Currently, 1,400,000 shares are outstanding, and 100,000 shares are being held...
A few years ago, a friend of yours started a small business that develops gaming soft ware. The company is doing well and is valued at $1.5 million based on multiples for comparable public companies...
Luther Corporation Consolidated Income Statement Year ended December 3 1 ( in $millions ) \ table [ [ Total sales, 2 0 0 6 , 2 0 0 5 ] , [ Cost of sales, 6 1 0 . 1 , 5 7 4 . 7 ] , [ Gross profit, ( 5...
Using CAPMThe German chemicals firm, Lanxess AG, has an expected return of 13 per cent, the risk-free rate is 1.5 per cent, and the market risk premium is 8.5 per cent. What is the beta of Lanxess?
Calculating Portfolio Betas You own a portfolio equally invested in a risk-free asset and two mining stocks, Vedanta Resources and Eurasian Natural Resources. The beta of Vedanta is 2.63 and the...
A 45 45 90 prism is immersed in water. A ray of light is incident normally on one of its shorter faces. What is the minimum index of refraction that the prism must have if this ray is to be totally...
1. Assumethatlengthin Oreochromis variabilis (Victoria Tilapia) ispolygenicvaryingfrom30cmto50cm. A 30cm purebred parent is crossed with another purebred 50 cm individual and the resulting F 1...
1. Using appropriate examples, compare and contrast the genetic diversity of marine fish species with freshwater fish species (8 marks) 2. Your class went on a trip and discovered a crater lake on...
Find sin(29) given that cos(0) = and 0
Amazing Aquariums began as a class project on new business development. Now that the visionaries behind the idea have graduated, they want to explore their business idea and see if the concept could...
3. Modify the program of Example 05 so that, it takes and prints values using the following two functions respectively. void get (double *&a, int& n); void print (double *a, int n); 4. Following is a...
Suppose we put into a logical database a segment of the U.S. census data listing the age, city of residence, date of birth, and mother of every person, using social security numbers as identifying...
For the following exercises, write the polynomial function that models the given situation. Consider the same rectangle of the preceding problem. Squares of 2x by 2x units are cut out of each corner....
A replacement project will annually generate additional revenues of $800,000. It has fixed and variable cost total $500,000. It will increase depreciation costs by $220,000. The firma has a marginal...
A firm has the opportunity to invest in a start-up solar company, a new cell phone technology, or the latest in television screen. These options are BEST described as _____projects. A. replacement B....
How do you input integer on the second one? I keep getting an error message Change Constraint Change Constraint

Using CAPMLOral has a beta of 0.65, the expected return on the CAC 40 Index is 8

Question:

Step by Step Answer:

Fundamentals Of Corporate Finance

Students also viewed these Business questions