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

Question

1 Approved Answer

A risky portfolio has a beta of 1.5. If the risk-tree rate is 1.5 and the market risk premlurn is 8.4, then according to CAPM

image text in transcribed
A risky portfolio has a beta of 1.5. If the risk-tree rate is 1.5 and the market risk premlurn is 8.4, then according to CAPM the expected return for the risky portfolio is Enter the expected retum in percentages, rounded to the nearest second digit after the decigial point. For example, if the calculated expected return is o. 103gd2 or: 10.3862% enter it as 10.39

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

Mergers Acquisition And Other Restructuring Activities

Mergers Acquisition And Other Restructuring Activities

Authors: Donald M. Depamphilis

6th Edition

123854857, 978-0123854858

More Books

Students also viewed these Finance questions

Question

4. Given the interests that you have identified, estimate how likely it is that you will be successfi.fl in negotiating your proposed change.

Answered: 1 week ago

Question

★★★★★
Massachusetts Stove Company manufactures wood-burning stoves for the heating of homes and businesses. The company has approached you, as chief lending officer for the Massachusetts Regional Bank,...

Answered: 1 week ago

Question

★★★★★
A risky portfolio has a beta of 1.5. If the risk-tree rate is 1.5 and the market risk premlurn is 8.4, then according to CAPM the expected return for the risky portfolio is Enter the expected retum...

Answered: 1 week ago

Question

★★★★★
Hunter, Folgers, and Tulip have been partners while sharing net income and loss in a 5:3:2 ratio (in percents: Hunter, 50%; Folgers, 30%; and Tulip, 20%). On January 31, the date Tulip retires from...

Answered: 1 week ago

Question

★★★★★
Explain the different departmentation with its advantages and limitations.

Answered: 1 week ago

Question

★★★★★
Brief the importance of span of control and its concepts.

Answered: 1 week ago

Question

★★★★★
What is meant by decentralisation?

Answered: 1 week ago

Question

★★★★★
5. Suppose that purely competitive firms producing cashews discover that P exceeds MC. Is their combined output of cashews too little, too much, or just right to achieve allocative efficiency? In the...

Answered: 1 week ago

Question

★★★★★
LO12.7 Distinguish among the monopoly price, the socially optimal price, and the fair-return price of a government-regulated monopoly.

Answered: 1 week ago

Question

★★★★★
4. Assume that a pure monopolist and a purely competitive firm have the same unit costs. Contrast the two with respect to (a) price, (b) output, (c) profits, (d) allocation of resources, and (e)...

Answered: 1 week ago

Previous Question Next Question