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

Question

1 Approved Answer

98. A stock has a beta of 1.4 and an expected return of 13.53%. What is the risk-free rate if the market rate of return

image text in transcribed
image text in transcribed
98. A stock has a beta of 1.4 and an expected return of 13.53%. What is the risk-free rate if the market rate of return is 10.6%? A. 2.825% B. 3.250% C. 3.275% D. 3.415%

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

Financial Accounting for Decision Makers

Financial Accounting for Decision Makers

Authors: Peter Atrill, Eddie McLaney

6th Edition

ISBN: 273763451, 273763458, 978-0273763451

More Books

Students also viewed these Accounting questions

Question

★★★★★
A stone is thrown vertically upward. On its way up it passes point A with speed v, and point B, 3.00 m higher than A, with speed v. Calculate (a) The speed y and (b) The maximum height reached by...

Answered: 1 week ago

Question

★★★★★
Identify five elements in the d-block that have positive standard potentials.

Answered: 1 week ago

Question

★★★★★
Where do the authors work?

Answered: 1 week ago

Question

★★★★★
Overnight Laundry is considering the purchase of a new pressing machine that would cost $100,000 and would produce incremental cash flows of $25,000 annually for 6 years. The machine has a terminal...

Answered: 1 week ago

Question

★★★★★
Problem 8-31 Mutually Exclusive Investments (LO5) Here are the cash-flow forecasts for two mutually exclusive projects: a-1. What is the NPV of each project if the opportunity cost of capital is 2% ?...

Answered: 1 week ago

Question

★★★★★
Problem 15-02 Given the following information concerning a convertible bond: Coupon: 7 percent ($70 per $1,000 bond) Exercise price: $26 Maturity date: 15 years Call price: $1,050 Price of the common...

Answered: 1 week ago

Question

★★★★★
Problem 1 (20 points). In a warehouse, it is required to locate a temporary storage area for 5 shelves operations that are located in the following coordinates (1, 4), (1, 8), (1, 12), (4, 4) and (4,...

Answered: 1 week ago

Question

★★★★★
Game Z Ltd has 3 sources of capitals - Common shares, Preferred shares and corporate bonds. The market value of its common shares is $50 per share while its Preferred shares are valued at $45 per...

Answered: 1 week ago

Question

★★★★★
Multi-step Income Statements The adjusted trial balance of Mally Distributors on December 31 is shown below. MOLLY DISTRIBUTORS Adjusted Trial Balance December 31 Debit Credit $30,200 Cash Accounts...

Answered: 1 week ago

Question

★★★★★
48 Assume that the actual amount of one of a company's variable expenses was $45,198. The company's planned level of activity was 19,000 machine-hours, and its actual level of activity was 18,500...

Answered: 1 week ago

Question

★★★★★
According to corporate policy, the average age of trade receivables and trade payables should both be 10 days and 20 days, respectively. At 30th June 2022, the Exeter hotel had trade receivables of...

Answered: 1 week ago

Question

★★★★★
M4: Discussion on Labor Market Trends. For this discussion share how do Walgreens Pharmacy in USA perceive labor market trends stemming from either globalization, automation, or gender equity...

Answered: 1 week ago

Question

★★★★★
2. In this chapter, the reader should reflect on the following concepts: historical reason, goal orientation, core values and top performance.

Answered: 1 week ago

Question

★★★★★
1. To understand how to set goals in a communication process

Answered: 1 week ago

Question

★★★★★
11. How often have you passed on to others this type of information, which you have filled in yourself? Never, then you should think again.

Answered: 1 week ago

Previous QuestionNext Question