Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.) The expected return on Kiwi Computers is 16.6 percent. If the risk-free rate is 4 percent and the expected return on the market is

1.) The expected return on Kiwi Computers is 16.6 percent. If the risk-free rate is 4 percent and the expected return on the market is 10 percent, then what is Kiwi's beta?

A.) 2.10

B.) 1.26

C.) 3.15

D.) 2.80

2.) The expected return on Mike's Seafood stock is 17.9 percent. If the expected return on the market is 13 percent and the beta for Kiwi is 1.7, then what is the risk-free rate?

A.) 4.5%

B.) 5.0%

C.) 5.5%

D.) 6.0%

3.) The expected return on KarolCo. is 16.5 percent. If the risk-free rate is 5 percent and the beta of KarolCo is 2.3, then what is the risk premium on the market?

A.) 7.5%

B.) 2.5%

C.) 5.0%

D.) 10.0%

PLEASE SHOW WORK. THANKS SO MUCH IN ADVANCE!

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

Step: 3

blur-text-image

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

The Socionomic Theory Of Finance

Authors: Robert R. Prechter

1st Edition

0977611256, 978-0977611256

More Books

Students also viewed these Finance questions