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

Question

1 Approved Answer

A stock has a beta of 0.5 and an expected return of 9.6 percent. A risk-free asset currently earns 3.3 percent.If a portfolio of the

A stock has a beta of 0.5 and an expected return of 9.6 percent. A risk-free asset currently earns 3.3 percent.If a portfolio of the two assets has an expected return of 12 percent, what is its beta?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

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

Survey Of Economics, Principles, Applications, And Tools

Survey Of Economics, Principles, Applications, And Tools

Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez

5th Edition

0132556073, 978-0132556071

More Books

Students also viewed these Finance questions

Question

★★★★★
Concrete Solutions manufactures concrete paving bricks. The processing takes place in two sequential departments. The following cost data relate to the month of January: Required: Prepare journal...

Answered: 1 week ago

Question

★★★★★
The following questions concern auditor responsibilities in an audit of financial statements. Choose the best response. a. The auditors responsibility regarding material misstatements caused by fraud...

Answered: 1 week ago

Question

★★★★★
Explain early views of learning through contiguity and classical conditioning and describe their implications for teaching. Explain operant conditioning, particularly the differences and similarities...

Answered: 1 week ago

Question

★★★★★
In our Feature Story about Super Bakery, Inc., we described a virtual corporation as one that consists of a core unit that is supported by a network of outsourced activities. A virtual corporation...

Answered: 1 week ago

Question

★★★★★
A two - dimensional array can mix data types. True False

Answered: 1 week ago

Question

★★★★★
On December 1 0 your business sold inventory worth $ 2 5 , 0 0 0 to a customer for $ 4 5 , 0 0 0 . You shipped it FOB destination and the terms were 1 1 0 , n 3 0 . The next day, the appropriate...

Answered: 1 week ago

Question

★★★★★
The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable...

Answered: 1 week ago

Question

★★★★★
Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2015, for $74,000. The PPE subledger shows the following information regarding the boat b....

Answered: 1 week ago

Question

★★★★★
A spaceship is orbiting around the Earth. The mass of Earth is 5.98 x 1024 kg, and the mass of the spaceship is 8600 kg. Let R be the distance from the center of Earth. If this distance changes from...

Answered: 1 week ago

Question

★★★★★
5. Two events occur at positions on the x-axis separated by a distance of Ax and by a time interval of At, according to one observer (Ann). Ann notes that when the first event occurs (a flash of...

Answered: 1 week ago

Question

★★★★★
A transverse mechanical wave is traveling along a string lying along the x-axis. The displacement of the string as a function of position and time, y(x, t), is described by the following equation:...

Answered: 1 week ago

Question

★★★★★
Bonita Corporation accumulates the following data relative to jobs started and finished during the month of June 2022. Costs and Production Data Raw materials unit cost Raw materials units Direct...

Answered: 1 week ago

Question

★★★★★
The permanence rule: We tend to have more confidence in information that is of a more permanent nature than information that is of a temporary nature.

Answered: 1 week ago

Question

★★★★★
The official stamp rule: We tend to have more confidence in information that is exempt from the Freedom of Information Act than if the same information was made readily available.

Answered: 1 week ago

Question

★★★★★
4. Based on a message you have recently received, analyse it in relation to its three components: a. the information component, b. its relational component and c. its hierarchical component.

Answered: 1 week ago

Previous Question Next Question