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31. What would be the expected rate of return for Elaine Josephson Architecture LLC(EJA) Comme Stock if EJA has a beta of 3.52; the
31. What would be the expected rate of return for Elaine Josephson Architecture LLC("EJA") Comme Stock if EJA has a beta of 3.52; the expected return for the Stock Market as a whole (or the avapital stock) is 15.75%; and the U.S. Treasury Bond rate is expected to average 4.375%? Use the Capital Asset Pricing Model to calculate the estimated return for EJA. 32. Given the expected return for Zeronic Aeronautics Corporation is 22.50% and the expected probabilities below, what is the standard deviation for this expected return for an investment in this company? Probability Return .10 10% .40 .35 .15 15 % 25 % 45% Expected Return 1.000% 6.000% 8.750% 6.750% 22.500%
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