FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. According to the capital asset pricing model, which of the following stocks should have the Highest required rate of return? Stock Name Beta 1.9

image text in transcribed
1. According to the capital asset pricing model, which of the following stocks should have the Highest required rate of return? Stock Name Beta 1.9 1.2 0.6 Deviation Alpha Automobiles Beta Electronics Omega Foods 17.0% 28.0 8.0 Omega foods because the ratio of standard deviation/beta is the lowest. Beta Electronics because its standard deviationt is highest. Alpha Automobiles because its beta coefficient is highest. Not enough information is given to answer this question. Save

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Multinational Finance

Fundamentals Of Multinational Finance

Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman

3rd Edition

0321541642, 9780321541642

More Books

Students also viewed these Finance questions

Question

★★★★★
For the hydrogenlike atom, V = -Z(e /4e.) (x + y + 2)2,

Answered: 1 week ago

Question

★★★★★
=+18-32 K Payback, even and uneven cash flows OBJECTIVE 5 You have the opportunity to expand your business by purchasing new equipment for $225000. You expect to incur cash fixed costs of $45000 per...

Answered: 1 week ago

Question

★★★★★
3. Controllability (whether the person can control the cause). For example, effort and finding a great teacher are controllable, but innate musical talent is not.

Answered: 1 week ago

Question

★★★★★
Explain how a data warehouse database is fundamentally different from a transaction processing database.

Answered: 1 week ago

Question

★★★★★
After the accounts have been adjusted at January 31, the end of the fiscal year, the following balances are taken from the ledger of Harrison's Dog Walking Service Company: Retained Earnings...

Answered: 1 week ago

Question

★★★★★
What type of sales training has revolutionized the way training happens in many firms

Answered: 1 week ago

Question

★★★★★
Design Arts Associates is an interior decorating firm in San Mateo. The following data are available in the firm's contract to redecorate the mayor's office for 2020: Purchases of raw materials of...

Answered: 1 week ago

Question

★★★★★
Why should you not attempt to fix a hacked computer, device, or work account by yourself? You do not have the administrative privileges needed to decrypt the system. Patches required for updating the...

Answered: 1 week ago

Question

★★★★★
You're the project manager of an AI system designed to diagnose problems with fertilization in a large community of farmers. You've hired agricultural experts; experts in the Python, Java, and Lisp...

Answered: 1 week ago

Question

★★★★★
Cost of goods sold (COGS): $70 Direct labor: $20 Direct materials used (DM): $15 Overhead applied at 200% of DM: 200% * $15 = $30 Cost of goods manufactured (COGM): $80 Work in process beginning...

Answered: 1 week ago

Question

★★★★★
As more employees are working remotely, organizations want to ensure they are complying with the HIPAA Security Rule and properly secure PHI being transferred between the employee and the...

Answered: 1 week ago

Question

★★★★★
Some analysts seem to have lost their trust in Nick Woodmans ability to run GoPro. What factors do you think are contributing to this lack of trust (Chapter 6)?

Answered: 1 week ago

Question

★★★★★
There are several types of changes that a firm can experience. What do you believe is the most important change that led to GoPros original success?

Answered: 1 week ago

Question

★★★★★
Analysts have called for a change in GoPros top management, in particular, its founder, Nick Woodman. Why do you think the firm has not made that change?

Answered: 1 week ago

Previous Question Next Question