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

Question

1 Approved Answer

9:7 The stock of Rullo Rigs has a beta of 1.34. The risk-free rate of return is 1.9 percent, the inflation rate is 2.2 percent,

image text in transcribed

9:7

The stock of Rullo Rigs has a beta of 1.34. The risk-free rate of return is 1.9 percent, the inflation rate is 2.2 percent, and the market risk premium is 6.9 percent. What is the expected rate of return on this stock? Multiple Choice o 2.8% 8.8% O O 11.1% O 9.4% O O 8.6%

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

Forecasting Principles And Practice

Forecasting Principles And Practice

Authors: Rob J Hyndman, George Athanasopoulos

3rd Edition

0987507133, 978-0987507136

More Books

Students also viewed these Finance questions

Question

★★★★★
An economics student makes the following statement: "It's easy to understand why the aggregate demand curve is downward sloping: When the price level increases, consumers substitute into less...

Answered: 1 week ago

Question

★★★★★
Evaluate: 7(10 log 0.1 ) + 6000(100 log 0.001 ).

Answered: 1 week ago

Question

★★★★★
=+16.2. Prove that if 0 sf. of almost everywhere and ff, du SA Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★
Zonker Inc. purchases 500 units of an item at an invoice cost of $30,000. What is the cost per unit? If the goods are shipped f.o.b. shipping point and the freight bill was $1,500, what is the cost...

Answered: 1 week ago

Question

★★★★★
Q 11.31: Maurice Company owns the following assets: Salvage Estimated Useful Life $14,00010 years 5 years 8,000 12 years Asset Cost $140,000 75,000 164,000 7,5005 The composite life of Maurice's...

Answered: 1 week ago

Question

★★★★★
What do you think of the comments of these two experts? Draw a process flow diagram for each of the two expert proposals. For each proposal, compute process capacity, labor utilization, and costs of...

Answered: 1 week ago

Question

★★★★★
2. List four factors that affect a bank' s ability to use"Liability Management: (4 points) 2. List four factors that affect a banks

Answered: 1 week ago

Question

★★★★★
At the end of October, Margaretlamented the company's situation: in the middle of production of Sheffield-T's most popular long-sleeve T-shirt, the company ran out of its usual collars, purchased...

Answered: 1 week ago

Question

★★★★★
A student calculated an average value of 4289 for a Boyle's law constant k. Based on the number of significant figures in the measured quantities, how many significant figures should this result have...

Answered: 1 week ago

Question

★★★★★
What is the difference between a population parameter and a sample statistic?

Answered: 1 week ago

Question

★★★★★
a) Batu Kawi and FGB Berhad are operated in the same industry. The table below shows the monthly prices of these two corporations for seven months period (from December 2019 to June 2020). The...

Answered: 1 week ago

Question

★★★★★
9.5 Recommend how to managetransfers and promotions more effectively.

Answered: 1 week ago

Question

★★★★★
9.4 Explain the roles in career development.

Answered: 1 week ago

Question

★★★★★
8.6 Discusstwo techniques used for assessing training needs.

Answered: 1 week ago

Previous Question Next Question